North Sea Oil Reserve 'Still Has More Than 20 Billion Barrels Left'

North Sea Oil

First Posted: 18/11/11 12:38 Updated: 18/11/11 15:00   PA

The North Sea could still contain more than £1 trillion-worth of oil and gas, energy minister Fergus Ewing has said.

Mr Ewing told MSPs that with "significant unharvested reserves" it is possible that as many as 24 billion barrels can still be extracted.

He spoke out on the issue during a debate on oil and gas, a month after energy firm BP announced a second phase of development at the giant Clair field, west of the Shetland Islands.

Mr Ewing said around 39 billion barrels have been extracted from the North Sea since large-scale production in the 1970s.

"Production levels may have peaked in 1999 but the story does not end there, far from it," he said.

"Here we are 40 years after oil and gas pioneers in the North Sea first started to pump Scotland's oil, and still the North Sea continues to produce 900 million barrels every year. And the story continues with significant unharvested reserves remaining in the North Sea."

He told MSPs experts had forecast oil and gas production can continue until at least the 2040s, adding that industry body Oil and Gas UK has estimated that between 15 and 24 billion barrels remain.

"This suggests between 30% and 40% of total oil and gas reserves by volume have still to be extracted," Mr Ewing said.

"At current prices these reserves could have a wholesale value in excess of £1 trillion. Given this extraordinary potential it is therefore imperative that the recovery of these reserves is maximised."

He continued: "It is clear there remain considerable opportunities in the North Sea and that the industry will remain an important part of Scottish and UK economies for many decades to come."

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The North Sea could still contain more than £1 trillion-worth of oil and gas, energy minister Fergus Ewing has said. Mr Ewing told MSPs that with "significant unharvested reserves" it is possible ...
The North Sea could still contain more than £1 trillion-worth of oil and gas, energy minister Fergus Ewing has said. Mr Ewing told MSPs that with "significant unharvested reserves" it is possible ...
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D-Driller
my micro-bio is empty
10:29 on 03/12/2011
Not only that, but then there are the gas reserves to produce as well. Plus, that is just the North Sea - we're moving farther and farther north and west of Shetland now. If Iceland and Greenland prove up reserves, it will be a huge boon for Europe's energy needs.
14:36 on 23/11/2011
The only way to know if there is any oil is to drill a hole in the ground.
20:52 on 19/11/2011
The era of cheap energy is over. Those that believe Peak Oil theory say rising demand form China and India will soon outpace the worlds ability to supply ever more oil leading to higher prices for all.

The risks of oil price hikes or supply shortages grows every year as China's economy and number of autos on the road continues to grow. It is time for every individual, business and country to plan for greater energy self sufficiency. The world economy is in for an energy price shock. Will we prepare for it by investing in alternatives?
14:38 on 23/11/2011
They are trying to manage the price of oil to give less incentive to finding alternatives.
D-Driller
my micro-bio is empty
10:32 on 03/12/2011
I find it interesting that, as you say, the world is growing and the demand for oil has continued to rise, with a few hiccups, for decades now, yet oil and gas never seem to be in short supply... Oh, prices go up and down, but one would think that if we had reached "Peak Oil" at some point, then every day from then on it would become scarcer, holding back growth, until, at some point, there is not enough to go around. WIth new fields coming on all over the world, it doesn't seem like that is the case.
15:26 on 03/12/2011
Then why is oil at over $100 a barrel?
02:01 on 19/11/2011
They are wrong about North Sea reserves.

Very wrong.

There is much more oil and gas than projected.
rabidrightwatch
Green leftie, planning for a sustainable future
14:30 on 19/11/2011
...and your reasons for your saying so are...??

there may well be unlocated oil and gas reserves, but this article deals with known reserves being continually reassessed on location..

or is your comment merely wishful thinking..
21:42 on 18/11/2011
And the Scots want to be independent? With that much oil left, London will never allow it.
21:07 on 18/11/2011
Good news from "jock Ewing" that theres plenty of oil left, time to bring prices down then ?

And when it does eventually run out, thats the time to allow the Scots to have their devolution !!!
19:07 on 18/11/2011
Is that Mr Ewing of the 'Dallas' Ewings? Just like JR to get himself a nice little job in energy like that one :)
HUFFPOST SUPER USER
Peter Speight
18:55 on 18/11/2011
20 billion barrels of oil in the North Sea.
The world uses 30 billion barrels a year.
It gives us 8 more months (IF they could recover all that oil, which they can't)

We will soon need a new Saudi Arabia every year. We can see how bad the situation is, when they start celebrating small oil finds - which were already found!
21:05 on 18/11/2011
Yes, but luckily we don't supply the whole world with oil, Doh !!
14:48 on 23/11/2011
We don't know how much oil is available, the only way to find it is to drill a hole in the ground.
HUFFPOST SUPER USER
Peter Speight
16:16 on 23/11/2011
No, we don't know how much. But that doesn't stop us counting on there being enough to supply our needs... whether it really exists or not.
16:44 on 18/11/2011
The North Sea may have a little more oil but new oil finds are not keeping up with demand in the world. Those that believe PEAK OIL theory say rising demand from China and India will soon outpace the supply raising the price for all.

It is time to transition to safe, clean alternative energy. Wind, solar, wave energy, geothermal and second generation biofuels made from algae, cellulose and waste are the future. The world produces a lot of trash every day. That trash can not be turned into fuel, energy and raw materials for new products.

The price of oil is rising. Let's diversify our risk and move to more alternative energy sources.
19:27 on 18/11/2011
It really is time to switch to new energy sources, wave/tidal power must be the favorite, powered by the moon and never ending, of course the oil companies will always fight this, better , I think, that the oil is used as a base for needed chemicals, not for energy, of course the profits to the oil companies wil be lower but the benefits to the world will be amazing.
The way to make people 'be green' is not to pontificate about the 'Green issue' tell them that being 'green' saves them money!
I pumped this arguement at my company, now instead of paying for our waste to be taken away, we actually,where possible reuse it or sell it, metal, paper, cardboard and plastic.
Ok, we do not make a lot out of it, less than 0.0001 of our turnover, but still an earner rather than a cost.
We can feel a bit smug as well!
No I did not get a bonus, just a new position and a pay rise!
If you can persuade your company to recycle, do it, keep nagging!
14:50 on 23/11/2011
If being "green" saves people money, can you please tell us why household energy bills are going through the roof?
D-Driller
my micro-bio is empty
10:41 on 03/12/2011
They seem to be keeping up just fine - had any shortages lately? Last 10 years? Last 25? Ultimately, it will begin to run out, but that time is not here yet.
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BeeJayCeee
I still loathe Thatcher
16:02 on 18/11/2011
Weird, isn't it? Whenever Scottish independence is mooted we're told that the oil has nearly run out, you can't rely on a dwindling resource, you'll be bankrupt within a couple of years but when discussed in a UK context there's plenty left, decades of production, billions to be made.

I know which one I believe and think how those extra tens of billions of pounds could be spent by a population of just over 5 million, on top of our current economic output and the savings to be made from cutting the subsidy to the rest of the UK.

If we don't vote for independence we truly deserve everything we get.
17:34 on 18/11/2011
You cannot assume Orkney and Shetland would join an independent Scotland - and that is where the bulk of the oil lies - Alex Salmond has a poor grasp of Scotland's history - Norway never ceded Orkney and Shetland to Scotland - and no Orcadian or Shetlander considers themselves Scots - much closer to Norway
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BeeJayCeee
I still loathe Thatcher
17:36 on 18/11/2011
Orkney and Shetland wouldn't have to join, they're already a part of Scotland.
14:55 on 23/11/2011
Ronnie, mate, spot on!

Shetland is on record saying that if Scotland becomes independent, then Shetland will also become independent from Scotland to keep its own oil.
rabidrightwatch
Green leftie, planning for a sustainable future
15:09 on 18/11/2011
As ORTHRUS below rightly says, over 50% of these projected recoverable reserves are in the Norwegian sector, and they will be husbanded shrewdly and carefully by Statoil, the Norwegian Government's state oil company.
The UK is unlikely to do the same, if we base our conclusions on its profligate use of North Sea oil/gas up until now.

His/her comments concerning crude and simplistic comparisons made by europhobes are also absolutely spot on.

However, this is not 'new' news: these reserve estimates are certainly welcome, but go little way to enhance our energy security and doesn't mitigate the inexorable depletion of global fossil fuels reserves & sources.

This is no time for complacency. This is time to finance and support alternative energy sources for the long-term - your children will thank you for it...
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14:36 on 18/11/2011
Quote: "The North Sea could still contain more than £1 trillion-worth of oil and gas, energy minister Fergus Ewing has said."

Europhobes might like to note that over 50% of that would be in the Norwegian sector. Norway, a country with just over 4.5 million, is seen as the model for the UK outside the EU. The disparity in population alone shows what a delusion that is.

Furthermore much of the British zone is rightly Scottish and should be attributed to them if they vote for independence.
16:16 on 18/11/2011
Orthrus - most of the oil is in Orkney or Shetland waters - should Scotland leave the UK Orkney and Shetland may decide to remain with the rest of the UK, join an independent Scotland or return to Norway - LEGALLY they still belong to Norway - Scotland has merely had possession since 1468 - Norway has never legally CEDED them to Scotland- they were merely pledged to secure some money which has not yet been paid - Shetlanders and Orcadians do NOT consider themselves Scots - one cannot simply assume they would join an independent Scotland
14:59 on 23/11/2011
Most of Scotland's oil is off Shetland and they are on record as saying that if Scotland becomes independent, Shetland will become independent of Scotland with the aim of keeping its own oil for itself.
14:31 on 18/11/2011
I thought BP was an American owned company, if so how will it benefit the UK?
rabidrightwatch
Green leftie, planning for a sustainable future
14:51 on 18/11/2011
BP (Beyond Petroleum) has many US shareholders, its products are priced (internationally) in US$, operates in over 90 countries - including the UK.
It benefits the UK because it conducts business here and pays taxes here for its UK business affairs, and oil from UK fields comes ashore providing fuel for the UK economy - simple really...
15:09 on 18/11/2011
Actually, BP still means "British Petroleum." The "Beyond Petroleum" slogan is just that, an advertising tagline.
15:03 on 23/11/2011
BP is owned by its shareholders. At the last count, the majorities were roughly evenly split between UK and USA shareholders..
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deluk
hot mess...
12:57 on 18/11/2011
 "It is clear there remain considerable opportunities in the North Sea and that the industry will remain an important part of Scottish and UK economies for many decades to come."

hear hear Fergus.