A new report from Deloitte, the business advisory firm, which gauges the oil and gas industryâs reaction to Sir Ian Woodâs Maximising Recovery Review, calls on the new regulator â the Oil and Gas Authority (Ian Wood), the Government and companies operating in the North Sea to adapt to a new reality in the basin.
The report found that drilling activity on the UK Continental Shelf (UKCS) needed to double to more than 90 wells per year over the next two decades to make the most of the estimated USD 1.3 trillion worth of oil and gas that potentially remains. Derek Henderson, senior partner in Deloitteâs Aberdeen office, commented: âOnly about a third of the known recoverable resources in the UKCS are left. The âeasy oilâ days are gone and we need a fiscal regime that is more reflective of the current state of the basin.â?
Geoff Gibbons, oil and gas consulting partner at Deloitte, said: âThe industry is very supportive of the new regulator and the Wood Review as a whole. If the industry can achieve all of the steps outlined by the Wood Review in time, this shift could help make the most of the remaining resource on the UKCS through maximising volumes, economic extraction and eventually effective decommissioning.â?
