North Sea production having a 'mini-revival'

19 July 2012

Posted by Kim Bardsley

Oil production in the British North Sea is going through a mini-revival, with the number of wells drilled and new fields entering production all climbing recently.

A study by Deloitte found that drilling for fossil fuels off the coast increased by 64 per cent in the quarter to June 30th when compared with the same period in 2011, Reuters reports.

Five new fields also started to produce oil and gas and have already equalled the total output for last year, which could have a positive impact on heating oil prices in the short term.

Although activity typically increases in the summer months, this is a better picture of the North Sea than has been painted in a number of years, managing director of Deloitte Petroleum Services Group Graham Sadler said.

Earlier this month, the government announced changes to the tax rules including the creation of Decommissioning Relief Deeds which could lead to more investment in North Sea oil.

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