31 August 2006
Oil and gas production in the North Sea fell in June despite an increase in drilling activity, new figures show.
The new oil and gas index from the Royal Bank of Scotland showed that combined daily output for the UK fell by 13% compared to the previous month. On top of this, annual production fell by 18%.
Oil production was down to 1,411,961 barrels per day in June while gas output decreased by 23% to 6,429 million standard cubic feet per day.
A Royal Bank of Scotland statement said: "Early summer maintenance depressed oil, and in particular, gas production in the North Sea in June but the sharp decline in production compared to one year ago suggests that the secular decline of the North Sea continues.
"This is particularly puzzling given that drilling activity aimed at the development of new fields or at boosting production of existing fields, which has a more immediate effect on output compared to exploration drilling, has accounted for the lion's share of the recent sharp increase.
"The relative weakness in exploration drilling in turn bodes ill for future production growth."
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