Tendeka hosts OGUK event prior to report launch
March 20, 2019
We were delighted to host an event this week at our HQ in Westhill, Aberdeenshire, for Oil & Gas UK (OGUK) in support and preparation for the launch of their Business Outlook 2019 report.
Our CEO Brad Baker, CTO Annabel Green and Advanced Completions Director Paul Lynch welcomed OGUK Chief Executive Deirdre Michie and OGUK Market Intelligence Manager Ross Dornan to Vanguard House, where they received a tour of our facilities, and discovered more about our UK and global operations, our latest technologies including wireless completions system PulseEight, and our swellables R&D lab. Furthermore, our management team demonstrated Tendeka’s extensive capability to develop technologies, our excellent track record and significant milestones, as well as highlighting our collaboration with industry bodies and operators.
To watch OGUK’s video as used at Business Breakfast to launch the report (20th March):
To watch a recording of STV News’ coverage of the report and the visit to Tendeka, go to: STV News item – 20th March 2019
OGUK’s 2019 report findings
The latest report reveals that £200billion will need to be spent by exploration and production companies in existing operations and new opportunities to realise industry’s Vision 2035, and adding a generation of productive life to the basin.
The report shows:
- Production has increased by 20% over the past five years, following 14 years of decline.
- Companies are looking to maintain unit operating costs at current levels, with operating expenditure running at around £7-7.5billion through 2019
- Momentum is building around exploration activity, with up to 15 exploration wells expected in 2019, including several potentially high-impact prospects
- Supply chain revenues are anticipated to stabilise aided by new capital approvals and operational investment, however pressures remain in some areas of the supply chain
- The largest 10 E&P companies accounted for just over half of production in 2018 compared to more than two-thirds in 2008, reflecting an increasingly diverse corporate landscape
- Production from the UKCS continues to provide around 60% of the UK’s oil and gas demand reducing reliance on imports
- Drilling activity – key to progressing resources to production – remains at a record-low rate
- Despite the low level of activity, up to 485million boe have been discovered so far from exploration wells drilled in 2018 – a similar total to discovered volumes in Norway but with 20 fewer wells
- More new projects were approved in 2018 than the previous three years combined, unlocking over £3.3billion of new capital investment and more than 400million boe of new reserves – a similar number are expected in 2019
- Around £200billion will need to be spent to add a generation of productive life to the basin, providing significant opportunities for both supply chain and E&P companies.
To download the full report, visit OGUK’s website here: https://oilandgasuk.co.uk/product/business-outlook-report/