Summary (2/4)

Over the last 35 years, the industry has (in 2004 money)

• Invested £220 billion in exploration and capital to develop the offshore oil and gas industry
• Spent £110 billion on UKCS operations
• Contributed £203 billion in tax revenues to HM treasury

The Offshore oil & gas industry continues to make a vital contribution to total UK security of energy supply

• It provided 98% of UK gas demand in 2004, with the remainder being supplied from storage and imports
• Saw UK gas production peak at 330 million m³/d, against peak winter demand of 420 million m³/d
• The UK is expected to remain a net oil exporter until the end of this decade
• UK gas will still be providing over 60% of UK needs even in 2010
• Ranks in the global top ten of oil and gas producing countries

Oil and Gas Prices have risen substantially in the last year but remain volatile

• Brent Crude peaked at $53/bbl in October ’04 and reached $56 in April ‘05, from a low of $29/bbl in Feb ’04
• UK gas prices have risen, following oil price trends, with NBP day ahead gas price averaging at 25p/th in 2004
• Gas prices are expected to continue to face upwards pressure until new imports arrive