Government figures have shown that manufacture of both oil and gas has fallen in an average rate of around Five percent every year since 2005. This is because the readily available stores of one's which were being tapped into underneath the North Sea have largely go out, leaving behind those areas that are a lot harder to take advantage of. Some experts thought that the peak in UK gas and oil production that was witnessed on the decade ago may not be achieved again.
So what has changed?
In 2010, oil prices rose to in excess of $100 per barrel, generating money that the energy companies were able to invest in developing new programmes for extraction. Extensive reserves in the Central North Sea, the West Shetlands and also the British section of the Southern Gas Basin are set to begin production very soon. Although this is not expected to raise gas and oil production to the significantly higher-level, it'll nonetheless bring the decline to some standstill, or at least for a long time.
Exactly what does this suggest for the future of the energy industry?
Investment, investment and additional investment. New energy reserves need to be located and there's a critical requirement of technology to be coded in to exploit the more challenging oil and gas fields. Last year saw reasonable rise in the number of exploration projects that were granted approval by the UK government, notably those from some of the leading companies such as Total, GDF Suez, BP, BG Group and RWE Dea.
The current hiatus in the UK's oil and gas production alone is anticipated to create benefits to the Treasury within the order of two billion pounds. This, along with the creation of new jobs and a potential 5.5 billion pounds in tax revenue added to britain's budget and labour market, brings a significantly welcomed breath of fresh air into Britain's long suffering economy.
With purchase of Britain's oil and gas industry set to achieve an all time high this season, the future looks rosy for all those seeking jobs in the sector. For people with engineering qualifications and backgrounds the outlook looks especially promising, and there is also expected to be a sharp increase in demand for commissioning and construction roles. Therefore it seems that graduates entering the gas and oil industry can look toward a prosperous future.