Regulator Reveals Latest UK Oil, Gas Reserves Estimate

In a statement posted on its website, the North Sea Transition Authority (NSTA) said its latest resources and reserves report shows that the NSTA’s estimate for proven and probable UK oil and gas reserves at the end of 2023 is 3.3 billion barrels of oil equivalent. 

The NSTA highlighted in the statement that this is 0.2 billion lower than at the end of 2022. It outlined that this change “is due to production of around 424 million barrels of oil equivalent in 2023 not being fully offset by additions following field development plan approvals or additional reserves for producing fields”. 

Contingent resource stands at 6.1 billion barrels of oil equivalent, the NSTA pointed out in the statement. It highlighted that “much of this resource” is in “mature developed areas and under consideration for development”. 

The NSTA noted in the statement that, on aggregate, UKCS petroleum reserves and discovered resources both remain at approximately 70 percent oil and 30 percent gas, when expressed in oil equivalent terms. 

It also pointed out that “official government forecasts suggest that oil and gas will remain a part of the UK’s energy mix as we transition to net zero” and highlighted that managing declining production to meet energy demands while they still exist, reducing reliance on imports, gaining economic benefits, and securing an orderly transition “is still vital”.  

In a key facts section on its website, industry body Offshore Energies UK (OEUK) states that oil and gas will still provide 50 percent of the UK’s energy needs in the mid-2030s. The organization notes on its site that this is estimated to fall to 22 percent by 2050.

“In all energy scenarios, oil and gas will continue to play a role in providing secure energy supplies,” OEUK states on its site.

“Our work is as vital as ever as we look to continue producing the oil and gas the UK needs, efficiently and with production emissions as low as possible, while working with others to cut the emissions from the use of oil and gas,” it adds.

In a keynote speech at the 2024 Energy UK Conference on September 17, which was transcribed on the UK government website, the UK Secretary of State for Energy Security and Net Zero, Ed Miliband, said, “there will be a transition that will take time, and oil and gas, including from the North Sea, will continue to play an important role in our economy for decades to come”.

“Our North Sea workers have huge talents which can continue to serve us in oil and gas as well as industries like CCUS, renewables, and hydrogen,” he added.

The NSTA’s 2022 reserves and resources report, which was released in October 2023, stated that the UK’s petroleum reserves “remain at a significant level”.

“The NSTA’s estimate for proven and probable (2P) UK reserves as at end 2022 is 3.5 billion barrels of oil equivalent, 0.5 billion barrels of oil equivalent lower than as at end 2021,” the report added.

In 2022, about 490 million barrels of oil equivalent were produced, the 2022 report revealed. Less than 20 million barrels of oil equivalent net were added to 2P reserves, which equates to a reserve replacement ratio of plus three percent, the 2022 report noted.

“The UK’s contingent resource level is significant with a central estimate of discovered undeveloped resources of 6.5 billion barrels of oil equivalent,” the 2022 report went on to state.

The NSTA’s 2021 reserves and resources report, which was released in September 2022, also stated that the UK’s petroleum reserves “remain at a significant level”.

“The NSTA’s estimate for proven and probable (2P) UKCS reserves as at end 2021 is 4.0 billion barrels of oil equivalent, 0.4 billion barrels of oil equivalent lower than as at end 2020,” that report added.

“Despite the reduced activities across the industry due to the Covid-19 pandemic, 150 million barrels of oil equivalent were matured by the granting of consent to one new field development and six field development plan addenda,” it continued.

In that report, the NSTA said the UK’s contingent resource level “is significant with a central estimate of discovered undeveloped resources of 6.4 billion barrels of oil equivalent”.

The NSTA regulates and influences the oil and gas, offshore hydrogen, and carbon storage industries, according to its website. The NSTA reports contain information provided by the North Sea Transition Authority and/or other third parties. OEUK describes itself as the leading representative body for the UK offshore energy industry.

Source:https://www.rigzone.com