The production of gas and oil in the UK is expected to enjoy its first increase in a decade and a half over the next year, the association for this industry stated recently.
UK gas and oil production has declined by more than half during the last decade, thanks to investment in fresh areas and easily reachable resources both running low, but this now appears set to reverse due to the deployment of more effective technology.
It is expected that the rise in production will begin this year, with a 3-4% increase being predicted, which will mark the first such spike since British gas and oil production hit its peak in 2000 – according to the Oil and Gas UK lobby group.
At this group’s annual economic report launch, economics director Mike Tholen spoke optimistically about the industry. He told Reuters:
“We are turning a corner in terms of the massive spend on North Sea fields pulling production up with it and on top of that we’re now beginning to get to terms with the cost base to find ways to make businesses cope in a much weaker environment.”
This is also likely to be good news for others impacted by this industry, such as those that supply oils like Mobil Pegasus 1 and Q8 T750 15W/40, which are in strong demand.
The investment by companies in technologies that can run oil fields with greater efficiency is considered to be the primary reason for the rise.