UK oil production continues decline

The year-on-year decline in oil and gas production in the UK sector of the North Sea continued in June, dropping by a further combined 12.9 per cent, according to the latest monthly report by the Royal Bank of Scotland.

Oil production was down 6.1 percent on the month to 1,263,382 barrels per day and down 11.4 percent compared with June 2006. UK natural gas production fell more sharply by 20.3 percent compared to May and by 14.7 percent on the year.


The bank said that decline, which started in 2000, was continuing despite near-record investment in 2006. It suggested June’s decline in production on the month was partly attributed to maintenance work on a number of platforms.

Commenting on the recent fall in crude oil prices, it suggested that the main reason rates dropped from a peak of 78.98 dollars per barrel on July 20 to 67.40 dpb on August 22 was due to the turmoil in financial markets rather than any change in fundamentals.

IRNA