There has been a surge in drilling for oil and gas in UK waters over the summer, according to new figures released yesterday.
Experts at business advisory firm Deloitte said a better economic climate and a more stable oil price were helping boost offshore activity.
Some 28 exploration and appraisal wells were started in the third quarter of 2009, 75% more than in the second quarter of this year.
Despite the rise, the total was still down by 7% on the same period in 2008.
Derek Henderson, senior partner for Deloitte in Aberdeen, said: “The increase in activity on the UK continental shelf can be wholly attributed to a sustained period of economic stability, albeit at a low-level plateau.
“We are seeing some selective easing of credit facilities after a depressed market in which credit conditions were extremely unpredictable.
“The effects of a more stable oil price cannot be overstated, with the average barrel hovering at $68 over the third quarter and the range of fluctuation limited to between $58.85 and $74.66.
“Looking ahead, it is hoped that the more secure financial markets, coupled with a consistent oil price, will have an overall positive effect on exploration and appraisal activities.
“A supportive pre-Budget report in November would also be welcome.”
Exploration wells are the lifeblood of the industry, while appraisal wells assess how much oil there is.
Just under a third of the new wells started in the third quarter lay west of Shetland.
Deloitte said the area historically accounts for less than 10% of UK E&A wells.
The Moray Firth saw 21% of the new wells in the third quarter, followed by the northern North Sea (18%), east Irish Sea (11%), central North Sea (11%) and southern North Sea (7%).
Aberdeen City and Shire Economic Future chairman Tom Smith said: “It is very encouraging to see an increase in activity, which has a positive knock-on effect across the supply chain and the region’s economy. Whilst we welcome a stabilising of the oil price, we must remain cautious as it is a difficult commodity to predict.
“In addition, the price of gas remains low and the UKCS remains a high-cost, challenging environment.
“The future wellbeing of the basin, and therefore our economy, is dependent upon more than the price of a barrel of oil.”
Mike Tholen, economics and commercial director at industry body Oil & Gas UK, said: “Whilst we are pleased to see signs of an increase in activity, we should take a wider perspective and look at the year as a whole.
“All the evidence points to a substantial reduction in exploration drilling, albeit the rate of appraisal drilling has pulled back from the low seen in the first half of the year.”
Aberdeen-based Andrew Reid, managing director of Douglas-Westwood, said: “While there have been increases in activity over the second quarter of 2009, the overall trend for the UK sector is downward. Activity is at levels last seen in 2006.”
