Commenting on the findings of Oil & Gas UK’s 2018 Economic Report published today, Shaun Reynolds, Partner and head of the oil and gas transaction services team at Deloitte in Aberdeen, said:

“Whilst production remains strong, which is testament to the resilience of the North Sea operators and supply chain, there is a strong feeling across the industry that we cannot become complacent following an uptick in the oil price. In particular, a key issue persists around the long-term impact of lower levels of exploration and appraisal drilling.

“It is imperative that we preserve the current low-cost environment, but with aging infrastructure and the possibility of a capacity pinch-point in the next few years, that will be a challenge. The industry should continue to incentivise innovative investment and reward those in the supply chain who work smart to maximise efficiencies and results. This is vital as a number of fields in the United Kingdom Continental Shelf (UKCS) will attempt to progress through the development process in the next few years and, if sanctioned, will be of massive significance to the UKCS and the wider economy, of which oil and gas remains a critical component.”

Deloitte is sponsor of Oil & Gas UK’s Aberdeen Breakfast Briefings in 2018