Energy Voice | North Sea to maintain output levels into mid-2020s, says WoodMac

The North Sea will be able to maintain its current output levels for nearly a decade, according to one of the most influential oil consultancies.

WoodMackenzie has released an outlook report stating mature areas, such as the North Sea, will be able to maintain output until the mid-2020s.

The analysts state that global demand for oil is expected to peak in the mid-2030s, an earlier prediction than many energy firms use in their planning.

BP and Shell have said they do not see a supply shortfall yet.

WoodMac said the industry must find increasingly expensive oil to offset declines from maturing assets.

The analyst firm expects US production to peak in mid-to-late 2020s, causing a heavier reliance on OPEC (Organisation of Petroleum Exporting Countries).

Its long-term outlook report said: “As non-OPEC production growth slows and the importance of OPEC’s output increases from 2023, OPEC’s role in managing prices becomes more focused on ensuring upstream investment keeps up with replacing lost barrels from onstream declines, and the growth in oil demand over the next decade or so.”

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