Oil and gas

Oil and gas sales increase

Increase of 18.2% during 2017-18.

Oil and gas sales value in Scotland has risen by 18.2% between 2016-17 and 2017-18, according to new figures.

The Oil and Gas Production Statistics for Scotland 2017-18, released today also shows that despite the slight decrease of 1.7% in the latest year, production of oil and gas remains 23.1% higher than the level recorded in 2014-15.

Production of crude oil and natural gas liquid production (NGL) was fractionally up over the year, increasing by 0.5%.

Scotland's share of production accounted for 96% of total UK crude oil and NGL output, while overall Scottish oil and gas production was 81% of the UK total.

Minister for Energy, Connectivity and the Islands, Paul Wheelhouse, said:

"I welcome the findings in the report which show the sector has seen an 18.2% increase in sales value. These figures reflect the increased price of oil and gas on the global markets and show confidence is continuing to return to the sector.

"Capital investment in oil and gas fields in Scottish waters remains strong at around £6 billion in financial year 2017-18, and oil production is up slightly.  

"At the same time the industry faces continuing challenges, including issues around exploration, and the Scottish Government will continue to do what we can to support the sector.

"However, the UK Government retains most of the key policy levers affecting the offshore sector, so we will continue to argue they should bring forward measures to rebuild exploration activity and to maximise economic recovery, while also providing an immediate boost to the supply chain."

Key statistics in the publication are:

• In financial year 2017-18, oil and gas production in Scotland (including Scottish adjacent waters) is estimated to have been 73.7 million tonnes of oil equivalent (mtoe).
• Production in Scotland decreased by 1.7% compared to 2016-17, and accounted for 81 per cent of the UK total (down from 82 per cent in 2016-17).
• In 2017-18, oil and gas fields in Scotland accounted for 96 per cent of UK crude oil and natural gas liquids (NGL) production, and 63 per cent of UK natural gas production.
• In 2017-18, the approximate sales value of oil and gas produced in Scotland is estimated to be £20.0 billion.
• The approximate sales value increased by 18.2% compared to 2016-17, despite the slight decrease in production, due to continued increase in prices throughout 2017 and the beginning of 2018.
• In 2017-18, operating expenditure (excluding decommissioning) on oil and gas production in Scotland is estimated to be £6.2 billion, up from £5.3 billion in 2016-17.
• In 2017-18, capital expenditure on oil and gas production in Scottish waters is estimated to be £5.8 billion, down from £7.8 billion in financial year 2016-17.

Background

Oil and Gas Production Statistics includes estimates of activity in Scotland (including Scottish adjacent waters). It reports production volumes, approximate sales income, operating costs and capital expenditure. The results are consistent with recent UK statistics and data published by the Department for Business, Energy and Industrial Strategy (BEIS) and the Oil and Gas Authority (OGA).

The full statistics publication, including results back to 1998, is available at: http://www.gov.scot/Topics/Statistics/Browse/Economy/oilgas1718

 

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