North Sea oil remains a “strong and productive sector”, an industry expert has said.
Graham Sadler, managing director of professional services firm Deloitte’s petroleum services group, made the comments as their report on drilling activity was published.
Research by the group showed that 16 exploration and appraisal wells were drilled during the second quarter of this year.
Mr Sadler said the figures were in line with what would be expected from a mature region such as the UK continental shelf (UKCS).
“These figures indicate the UKCS remains a strong and productive sector, which bodes well for the final two quarters of the year,” he said.
“I fully expect to see further positive figures in quarters three and four as the region recovers from a prolonged and harsh winter, which was followed by an unusually late spring.”
The report from Deloitte’s petroleum services group said: “With the sustained high oil price and the evolution of new technologies, companies are now able to develop what in the past would have been considered as sub-commercial developments.
“These factors together with changes to field tax allowances and decommissioning tax relief by the UK Government in the March Budget 2012 should incentivise and encourage further investment and greater commitment to develop oil and gas assets in the North Sea.”