THE FALL OF THE UK NORTH SEA PRODUCTION

According to analysts from Oil & Gas UK, the North Sea oil and gas industry was last year hit by its biggest ever fall in production with another slide in output forecast for 2012. Output plunged in 2011 by 19% to 656 million barrels of oil equivalent. The sharp decline affects the drilling activity because of both tight rig market and other constraints. In 2011, 19% last year in the number of wells drilled compared with 2010. A total of 122 development wells were drilled (down 6%); 14 exploration wells (down 50%); and 28 appraisal wells (down18%). The North Sea oil & gas industry supports up to 400,000 jobs in UK.