Economic Report 2000 Index

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Meeting the Challenge The Future Since the Task Force Vision was established in late 1998 measurable progress has been made across the industry in creating investment options that address the aspirational targets for investment and production in the next decade. UKOOA's recent survey reveals the potential for an improvement in activity and indicates that the current portfolio of investment options could, if sanctioned, add 1.5 billion boe to production over and above the predictions contained in the Vision analysis of 18 months ago (see Figure 30). "If industry is to have a future it will need skills and talented people. They in turn have to see a bright future for themselves." Rt Hon Helen Liddell MP, Minister for Energy and Competitiveness in Europe. The industry has in recent surveys revealed the potential for a significant improvement in activity. However the attraction of these simple projections of production and investment conceals their inherent fragility. Many of the opportunities identified to deliver the production and investment outcomes require combinations of new technology, lower costs, market access for gas and stability of the regulatory and fiscal environment. 2001 will be a critical year for the future of UKCS investment and development, particularly with the long term oil price expectation pointing downwards rather than upwards. Ensuring that these investment opportunities are robust to the expected environment in 2005 and beyond is the key to their success. In the past, the industry has risen to the challenges presented both on the UKCS and globally. Harnessing the skills that already exist within the workforce, attracting new talent from universities and schools and the development and introduction of new technology will offer the industry better resources to achieve its goals. Figure 30 - UKCS potential production: current versus 1999 'Task Force' estimate