UK Oil and Gas Production: DEC 2013

The UK Dept of Energy and Climate Change finally released Dec 2013 oil and gas production data, along with an upward revision to Nov 2013 data.  Within the historical seasonality patterns, oil production was down YOY in December just as it was in November.  Dry Gas volumes recovered from prior month lows, as they have in each of the last three years, but continued an overall annual double digit decline rate (approximately 15% based on the preliminary December '13 figures).

UK Oil Production

The decade long decline in UK oil production may be leveling off.  New activity in the North Sea is beginning to bear some fruit, and for two months in a row oil volumes are above the same month in 2013, albeit at a low level of just 670 KBOPD.  Another few months of observation are needed to confirm a true reversal of the decline trend.