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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (36719)	2/4/1999 7:13:00 AM
From: Tomas	Read Replies (3) \| Respond to of 95453

North Sea crude production tipped to reach record levels. Aberdeen Press & Journal, February 4 UK NORTH Sea production is expected to climb to new record levels this year, despite the oil price slump and persistent worldwide supplies glut. Wood Mackenzie analysts calculate that North Sea production will average 2.88million barrels per day. And 100,000bpd from land-based fields and Britain's total crude production is expected to come within an ace of 3million bpd. This compares with 2.62million a day for 1998, in itself a record, they say in a new report. "A healthy rise in production from existing UK Continental Shelf fields is expected during 1999," say the analysts. "This will primarily be from fields that have come onstream since 1996 that are either approaching full potential or maintaining plateau production levels during the year." It is believed that 15 new UK fields will make it onstream this year, contributing an anticipated 191,000bpd to output. But they are mostly small fields whose total reserves are barely half the crop of 18 new-starts last year. The accent is on low-cost developments based on production ships and subsea tie-backs to existing field infrastructure. It means capital spending will slump to a mere £2.28billion versus £4.82billion last year. Include production from Norway and other North-west European offshore producers and expectation at WoodMac is that overall North Sea oil output will average 6.1million bpd ... some 13% up on last year. Despite the current industry difficulties, the analysts say most fields continue to be profitable, even at a $10 per barrel price. "Consequently, even in the current oil price environment, Wood Mackenzie does not believe that operators would seek to shut-in any North Sea production in the short-term. "Rather the emphasis is still on operators to maximise production within the existing reservoir and facilities constraints in order to maximise cash flow. pressandjournal.co.uk