Scottish oil production has increased by 21.4% in 2015-2016, the largest rise recorded in 15 years, according to the latest figures revealed by the Scottish Government.
However, the value of sales decreased to the continued low crude prices, illustrating the challenges faced by the sector.
“Although this remains a difficult time for the industry and its workforce, it is encouraging to note this increase in production as the industry adapts to the current period of low prices. Capital investment in oil and gas fields in Scottish waters was £10.2 billion and the approximate sales value of oil and gas produced in Scotland is estimated to be £13.4 billion,” Cabinet Secretary for the Economy, Jobs and Fair Work, Keith Brown, said.
Oil Production Rises in the North Sea
According to the government’s 2015-2016 Oil & Gas Production Statistics, the oil and gas industry in Scotland is adapting to the low price period, with production increasing by more than a fifth over the 2015-20156 period.
“The Scottish Government strongly believes that the North Sea oil and gas sector can have a bright future for years to come. This, however, will continue to require a concerted effort from all stakeholders,” Brown said.
Buzzard was the highest producing field in the North Sea in 2013
According to Brown, the Scottish government continues to support the North Sea oil industry, namely through the provision of £24.5 million for increased innovation and business support measures.
As well as this, the government plans to continue pressuring the UK Treasury to help secure new investment in assets of strategic importance.
Scottish Oil Production Accounts for 81% of UK Total
Overall, oil and gas production in Scotland is estimated to have reached 70 million tonnes of oil equivalent in 2015-2016, accounting for 81% of the UK total.
Over the period, oil and gas fields in Scotland accounted for 96% of UK crude oil and natural gas liquids (NGL) production, as well as 60% of UK natural gas production.
Additionally, the approximate sales value of oil and gas produced in Scotland is estimated to be £13.4 billion, a 23.5% decrease compared to the previous year.