Westwood Insight – UKCS on track to meet emissions targets but increasing pressure to address intensity
The pressure is rising to reduce emissions from upstream operations. The last few years has seen a reduction in total emissions and improvement in emissions intensity as companies have focused their attention on operational advancements and efficiencies.
Oil and gas exploration in 2021 was remarkably resilient despite the COVID-19 pandemic and accelerating energy transition. The high impact well count was maintained year on year, but performance dropped significantly both in terms of discovered resources and success rates.
Saudi Aramco’s initial push to nearly double its jackup fleet by the end of 2024 will result in 31 new contract awards, the majority of which are for long idled or stranded newbuild rigs
Europe’s recently difficult relationship with Russia took a turn for the worse at the end of last month. Citing a failure to pay for supplies in roubles, Russian energy giant Gazprom halted all exports of gas to Poland and Bulgaria. That action, which the Financial Times described as part of the Putin administration’s “efforts to weaponise energy supplies over the invasion of Ukraine,” added urgency to Europe’s attempts to sever its dependence on Russian fossil fuels.
Since the oil and gas downturn of 2014 there has been significant pressure on drilling service costs, including land rig day rates. One of the most significant costs on any onshore oilfield is the cost of hiring a rig to drill the well.