Still one of the world’s key oil and gas producing regions, the North Sea is witnessing declines in production that are only set to continue. GlobalData looks at the figures behind the facts.

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The North Sea region contributes significantly to the global production of oil and gas. Though its contribution has declined over the last few years, it is still a key region for global oil and gas supplies. In 2011, it contributed about 3.6% to global oil and gas production. This share was recorded at around 1,771.6 million barrels of oil equivalent (MMboe).

Norway and the UK are the leading exploration markets in the North Sea region. Norway leads in terms of the number of oil and gas discoveries made since 2008, while the UK dominates in terms of the number of active exploration blocks.

The North Sea region has around 2,418 exploration blocks, of which 1,966 belong to the UK (see figure 1). These are located in the central North Sea Basin, Mid North Sea High Basin, northern North Sea Basin, Southern Gas Basin, and the East Shetland and West of Shetland areas. Norway has 392 exploration blocks located in the North Sea Basin.

The North Sea region has seen 106 oil and gas discoveries since 2008, 61 of which have been made offshore Norway, and 40 in UK waters.

Decline in North Sea production

Oil and gas production in the North Sea region declined at an average annual growth rate (AAGR) of 7.7% over the 2006-2011 period. In 2006, oil and gas production in the North Sea was recorded at around 2,598.7MMboe. By 2011, production had declined to around 1,771.6MMboe (see figure 2).

Attributed to maturing fields in the region, this decline is expected to continue in the coming years. Production from the region is estimated to fall from 1,702.3MMboe in 2012 to 1,447.4MMboe in 2020, at a negative AAGR of 2%.

Throughout the 2012-2020 period, some of the major producing fields in the North Sea region are expected to witness declining production, with Norway’s Troll field, one of the largest producing fields in the region, expected to see falls in production from 51.52 million barrels (MMbbl) in 2011 to 32.47MMbbl in 2020.

Similarly, gas production from the field is estimated to decline from 886 billion cubic feet (bcf) in 2011 to 295.8bcf in 2020. Other major producing fields, including Ekofisk and Kvitebjørn in Norway, and Elgin in the UK, are expected to witness declining production in the future.