New North Sea startup announced as figures show Oil and Gas exports worth over £30 billion

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  Scottish exports of oil and gas to the rest of the UK and international markets are estimated to be worth over £30 billion in 2012 according to figures compiled by economists at the Scottish Government.

International sales by the Scottish oil and gas supply chain have more than doubled from £3.4 billion in 2003 to £8.2 billion in 2011.

The Oil and Gas Analytical Bulletin summarises new experimental statistics which show that exports of crude oil and natural gas liquids (NGLs), were worth almost £18 billion in 2012.

Refined petroleum products and natural gas were worth an additional combined value of £12 billion.

This is the first time estimates for oil and gas exports have been produced for Scotland.  They show home-grown expertise has helped secure hundreds of new contracts for Scottish firms in Australia, Brazil, Mexico and Africa.

Enterprise and Energy Minister Fergus Ewing said:

“As an international oil and gas exporter, Scotland is undeniably a main player. It is a huge and increasing market, as this latest analytical bulletin shows

“Recent estimates suggest that activity in the North Sea fields will last for decades with 24 billion barrels of oil equivalent, valued at £1.5 trillion.

“Only last week we saw the announcement of development of the £4 billion Kracken field, which is expected to be producing hydrocarbons well into the 2040s. Many more such announcements will be forthcoming.

“Sir Ian Wood’s recent review of maximising oil and gas recovery underlined the significant value of the North sea oil and gas industry. It highlighted the industry’s experience and expertise of building a globally competitive supply chain.

“Increasingly, our companies are embracing the major opportunities in the oil and gas supply chain, winning lucrative contracts to export products and services from Scotland. It is the first time the scale of the international industry in the North Sea has been available in such detail.

“We have many creative and innovative companies capable of identifying growth opportunities in overseas markets and making a significant contribution to such business for many years to come.”

Scotland is estimated to be the largest oil producer and the second largest gas producer in the EU. Scotland’s oil and gas industry supports more than 200,000 jobs.

A recent report from Scottish Enterprise on the UK Continental Shelf (UKCS) suggests a total of £44 billion of capital expenditure could be invested in new and redeveloped fields by 2016.

The report comes on the same day that ConocoPhillips announced production startup and first gas from its North Sea Jasmine field.  The company estimates the Jasmine facility has the gross capacity to produce 140,000 barrels of oil equivalent per day (BOED).  In 2014, ConocoPhillips expects net production to be approximately 40,000 BOED.

“The startup of Jasmine represents another important milestone for ConocoPhillips and builds upon the recent successful startup of Ekofisk South in Norway and the Christina Lake Phase E oil sands project in Canada,” said Matt Fox, executive vice president, Exploration and Production.

He added: “Jasmine is one of several major growth projects that will contribute to ConocoPhillips’ 3 to 5 percent production growth rate through 2017.”

Jasmine was discovered in 2006 by ConocoPhillips as Operator (36.5%), together with its co-venturers Eni (33%) and BG Group (30.5%), and is one of the largest discoveries in Scottish waters the last 10 years.

Commenting on the news from ConcoPhillips, Mr Ewing said:

“Today’s announcement from ConocoPhilips highlights once again the commitment from the oil and gas industry to the North Sea.

“The news of the Jasmine field starting production gives a further boost to the industry, and follows on from recent announcements of investment in the West of Shetland and northern North Sea.  The continued growth and investment in the North Sea is testament to the skilled and talented staff within the industry, and is a reminder of the continuing job and supply chain benefits from our oil and gas industry.

“Scotland’s industry-led Oil and Gas strategy sets out an overall theme of maximising resource recovery through a focus on industry led innovation, skills and supply chain growth.  With up to 24 billion recoverable barrels with a potential wholesale value of £1.5 trillion, more than half of the resources in the North Sea, by value, still to be extracted, it is clear that the industry will make an important contribution to the Scottish economy for decades to come.”