UK North Sea Drilling Activity, Production Decline

Rigzone reports that according to Deloitte’s Petroleum Services Group, only nine exploratory and appraisal wells were drilled on the UK Continental Shelf during 2011 first quarter which is a 25 percent decline from the same period in 2010.

The market news is quoted as saying:

Prior to the announcement of tax increases by the UK government, Deloitte said that, despite the decrease in drilling activity, industry outlook for UK drilling had initially appeared positive this year as the average Brent Blend oil price continued to rise. Deloitte noted that there were indications that increased Brent prices and tax incentives were encouraging companies to return to pre-recession strategies.

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