According to the British industry body Oil and Gas UK (OGUK), exploration and production companies will have to invest a total £200bn (approximately €230m) to fully exploit the domestic oil and gas sector, to realise industry’s Vision 2035 and to add a generation of productive life to the basin. According to OGUK, production has increased by 20% over the past five years, following 14 years of decline.
The corporate landscape has been increasingly diverse as the largest ten companies accounted for just over half of production in 2018, compared to more than two-thirds in 2008. The firms are trying to maintain unit operating expenditure at current levels, as they are expected to be running at around £7.5bn (€8.7bn) through 2019.
In 2018, more new projects were approved than during the previous three years combined, unlocking over £3.3 billion of new capital investment and more than 400 Mboe of new reserves, a level expected to be reached in 2019 as well. Production from the United Kingdom Continental Shelf (UKCS) continues to provide around 60% of the domestic oil and gas demand, thus reducing reliance on imports.