The U.K. government appointed Ian Wood, former chairman of oil services provider John Wood Group Plc, to conduct a review of the offshore oil and gas industry to determine how to get the most from remaining reserves.
Results of the review will be released this year and the final report and recommendations are expected to be published in early 2014, according to a statement today by Energy Secretary Ed Davey. The last report was carried out in the early 1990s, he said.
The review comes at a time of declining reserves, aging infrastructure and falling efficiency levels. The risk of premature decommissioning also needs to be addressed, according to the statement.
Investment in the U.K.’s Continental Shelf will reach a record 14 billion pounds ($22 billion) this year, Davey said. About 41 billion barrels of oil and gas have been produced and more than 20 billion barrels may still be extracted, he said.