Oil industry in the UK - statistics & facts
The United Kingdom is among only a handful of countries in Europe extracting and producing crude oil. The majority of proved oil reserves in the UK are held offshore within the United Kingdom Continental Shelf. Following the beginning of offshore oil extraction in the North Sea in 1975 and with rapidly increasing production figures, it is not surprising that known oil basins have been slowly depleted. Between 1990 and 2022, proved reserves more than halved. This was not just the result of less exploration activity, but also a push by the government to find and support alternative fuels in an effort to reduce the country’s carbon footprint.
As of 2023, there were 40 UK enterprises in the extraction of crude petroleum and natural gas sector, with an annual turnover exceeding five million British pounds. The total number of businesses was 120.
Production hit in the early 2010s & impact on Brent prices
Daily oil production in the United Kingdom has fallen to less than one million barrels. The years between 2012 and 2015 were the first time that production fell to such levels as UK producers were left behind their U.S. competitors using unconventional methods such as horizontal drilling and fracking, flooding the market with cheap crude. Those years saw the average annual Brent crude oil price fall by over 50 U.S. dollars. Brent is the benchmark used for oil produced in the North Sea and one of the most referenced oil prices in the world.As of 2023, there were 40 UK enterprises in the extraction of crude petroleum and natural gas sector, with an annual turnover exceeding five million British pounds. The total number of businesses was 120.
