Despite Increase In Production Level North Sea Oil And Gas Value Drops

Despite Increase In Production Level North Sea Oil And Gas Value Drops

The value of Scottish North Sea oil and gas has slumped by almost a quarter to reach the lowest total recorded since 1999, new figures have revealed.

Despite a 21.4% increase in oil and gas production in 2015-16, Scottish Government statistics showed provisional sales income fell by £4.1 billion to £13.4 billion.

That represents a drop of more than £10 billion from two years ago, with sales income in 2013-14 amounting to £23.8 billion and compares to a high point of £29.5 billion in 2008-09.

The drop in sales value is due to "sustained low prices" for oil and gas, the Scottish Government said, with prices having dropped to below 50 US dollars (£37) a barrel, compared to the high point in July 2008 of 147 dollars (£111).

Scotland produced an estimated 70 million tonnes of oil equivalent (mtoe) last year, up from 57.7 mtoe in 2014-15.

While oil and gas fields in Scotland accounted for almost all (96%) of the UK's crude oil and natural gas production, the volume produced is half the level it was in 2004-05 and well below the 184.6 mtoe recorded in 1999-00, the year that the statistics began.Read more

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