Fifty years into the North Sea oil and gas industry it can still prove full of surprises, according to one expert.
Mike Tholen, Upstream Policy Director of trade association Oil & Gas UK, made the remarks in response to the announcement that Hurricane Energy may have discovered a billion barrel lifesaver for the struggling sector.
Tholen said: “This is very exciting news from Hurricane Energy and bodes well for the basin. The early production system on the Lancaster discovery will be the first development of a fractured basement play on the UK Continental Shelf and will help give a greater insight on the Halifax well discovery and the regional potential. The whole of the industry will be watching these developments with interest.
“This announcement flags the potential of the basin which after 50 years still comes up with some surprises. The results of the Oil and Gas Authority’s 29th licensing round is a further sign of the confidence in the UKCS, with 25 licences awarded to 17 companies to explore for oil and gas in frontier areas of the UK.
“There are up to 20 billion of barrels of oil and gas still to be recovered from the UKCS and the cost and efficiency improvements made by industry over these last two years mean we are much better placed to compete for the exploration funds and investment we so badly need to ensure we maximise the basin’s potential.”
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