Page 16: of Marine Technology Magazine (March 2014)

News The number of Þ elds which began producing oil and gas in the UK hit its highest level for Þ ve years in 2013, as a number of operators focused on devel- opment activity. This is according to the latest report into offshore activity from Deloitte, the business advisory Þ rm. The report, detailing activity across North West Europe over the last 12 months and compiled by DeloitteÕs Petroleum Services Group (PSG), found the num-ber of UK Þ elds which started produc- tion rose by 44% in 2013 (up from nine in 2012 to 13 in 2013). This Þ gure rep- resents the highest number since 2008, when 16 Þ elds were brought on-stream. Of the 13 Þ elds brought on-stream last year, 84% were eligible for tax allow- ances, pointing to a positive industry reaction to the government incentives in place. However, a total of only 47 explo- ration and appraisal wells were drilled on the UK Continental Shelf (UKCS) in 2013, compared with 65 in 2012 Ð a de-crease of 28%. During the same period, the Norwegian Continental Shelf (NCS) saw a 41% increase in drilling activity. Graham Sadler, managing director of DeloitteÕs PSG, said that more needed to be done to encourage drilling on the UKCS, including incentives for explora- tion activity. Sadler said: ÒThe North Sea industry is complex and companies operating in there have to consider many factors. De- spite the high oil price, margins are tight and the drop in drilling during 2013 most likely reß ects the increased costs of operating. Staff costs remain high and access to equipment such as rigs, which are limited in number, drives prices up- wards. ÒNevertheless, we are seeing evidence that government incentives are helping to stimulate Þ eld developments - even historic discoveries - with Chev- ronÕs recent announcement that it will start work on the Alder Þ eld, which was discovered in the 1970s. O shore UK North Sea 2013 sees 44% rise in North Sea Þ elds starting production but 28% drop in exploration and appraisal drilling 16 MTRMarch 2014 MTR #2 (1-17).indd 16MTR #2 (1-17).indd 162/25/2014 10:05:23 AM2/25/2014 10:05:23 AM