Investment & Expenditure – Supplementary Statistics and Commentary

During 2006 total UKCS expenditure increased by £2 billion to over £11.5 billion. This total comprised approximately £600 million on exploring for, and appraisal of, new discoveries, £5.6 billion of capital investment to develop new fields and £5.5 billion to operate new and existing production. However, this increase in expenditure was largely down to cost inflation (which was approaching 20%), and not greater activity. The sustained high oil price has increased demand for resources globally, resulting in rising costs which put particular pressure on the economics of maturing provinces such as the UKCS, and represent a real threat in terms of the economic sustainability of operations in the UKCS basin.

UKCS Expenditure Forecast 2003-2010

UKCS Capital Expenditure Forecast

UKCS Unit Operating Cost by Region 2005-2008