8 Production and Disposal Activities

OIL PRODUCTION

8.1 A total of 132.6 million tonnes of oil was produced in 1998. Chart 8.1 shows details of the oil production by field in 1998. More information on oil production can be found in Appendix 6.

Chart 8.1 - 1998 Oil production by field (million tonnes)

8.2 Production commenced at 12 offshore oil/condensate fields during 1998. Gannet E in January, Galley in March, Mallard in April, Larch, Mungo, Schiehallion and Grant in July, Britannia in August, Heron and Monan in September, Flora in October and Marnock (part of Marnock-Skua) in November.

8.3 Production also commenced at 5 onshore oil fields during 1998: Storrington in May, Fiskerton Airfield in August, Cold Hanworth and Keddington in September and Goodworth in December.

OIL AND GAS PRODUCTION FORECASTS

a) Oil Range including NGLs and Condensate

b) NGLs and Condensate Million Tonnes

8.4 The forecasts are presented as a range of outcomes for each year to take account of the many uncertainties involved. The figures include stabilised crude oil, natural gas liquids and condensates.

8.5 Production is expected to be sustained above the previous peak levels of the mid-1980’s however, the production range has been scaled down for the early part of the forecast to reflect the fact that the current weakness in oil prices has meant that some projects will not come forward in the timescale previously expected.

8.6 The NGLs (Natural Gas Liquids) and condensate forecast is being provided in response to a request from industry. The increased forecast for 2001-2002 for these lighter hydrocarbons reflects additional gas condensate production.

c) Gas Range

8.7 The forecast relates to UKCS (United Kingdom Continental Shelf) production available for sale. The importance of UK household sector demand means that production in particular years will be influenced strongly by winter temperatures relative to the seasonal average.

8.8 Gas production has grown strongly as gas-fired generation capacity has come on stream. Uncertainty about later years of forecast relates mainly to the possibility of further significant investment in such capacity, and degree of utilisation of the UK-Belgium interconnector which will allow new gas developments to find profitable sales opportunities in a range of western European markets.

OIL DISPOSAL

8.9 During 1998, 49.5 million tonnes of UKCS oil (including natural gas liquids) were delivered to UK refineries, representing 37.4% of total deliveries. Throughout the same period, 2.9 million tonnes were delivered to other UK sites such as petrochemical plants and storage depots. Exports of UKCS oil (including NGLs) in 1998 amounted to 80.1 million tonnes, compared to 39.5 million tonnes of imports. Chart 8.2 shows details of total UKCS disposals of crude oil and NGLs in 1998. Exports were almost entirely to the markets of other member countries of the European Union or of the International Energy Agency. The majority of the remainder went to traditional markets. Table 8.1 shows the sources of UKCS crude oil received at UK terminals during 1998.

Table 8.1 - Oil terminals receiving UKCS crude oil in 1998

Terminal	Location	Fields Connected		1998 Receipts	1998 Exports (1)
(Million tonnes)
Sullom Voe	Shetlands	Brent System Brent, Cormorant North, Cormorant South, Deveron, Don, Dunlin, Dunlin SW, Eider, Hudson, Hutton, Hutton NW, Merlin, Murchison, Osprey, Pelican, Tern, Thistle. Ninian System Alwyn North, Columba B, Columba D, Columba E, Dunbar, Ellon, Grant, Heather, Lyell, Magnus, Magnus South, Ninian, Strathspey.		29.8	20.8
Flotta	Orkneys	Chanter, Claymore, Galley, Hamish, Highlander, Iona, Ivanhoe, MacCulloch, Petronella, Piper, Rob Roy, Saltire, Scapa, Tartan.		10.2	5.9
Forties (landward)	Hound Point (via Cruden Bay)	Andrew, Arbroath, Arkwright, Balmoral, Beinn, Birch, Brae Area, Brimmond, Britannia, Bruce, Buchan, Cyrus, Drake, Erskine, Everest, Fleming, Forties, Glamis, Heron, Kingfisher, Larch, Lomond, Machar, Marnock, Miller, Monan, Montrose, Mungo, Nelson, Scott, Sedgwick, Stirling, Telford, Thelma, Tiffany, Toni.		38.4	20.1
Teesside		Auk, Clyde, Gannet A, B, C, D, F, Joanne, Judy, Leven, Medwin.		7.9	5.5
Nigg Bay	Cromarty Firth	Beatrice (2)		0.4	0.4
Total				86.7	52.7

(1) In addition to these exports 19.6 million tonnes was exported from offshore loaders and 4.0 from Hamble Terminal.

(2) Excludes Gryphon Alba and Captain crude transported to Nigg Bay by shuttle tanker.  These fields are included with the offshore loaders in footnote (1) above.

To download this table click the appropriate format: Excel 4 or CSV file.

Chart 8.2 - Total UKCS disposals of crude oil and NGLs 1998

8.10 In 1998, gas produced from the UKCS increased to 95.6 billion cubic metres (3.38 trillion cubic feet). This includes gas used by operators for drilling, production and pumping operations. Production commenced at six new offshore gas fields and at one new onshore gas field. Additional supplies of gas which are associated with crude oil extraction also started being produced in 1998 from sixteen new oil and condensate fileds (twelve offshore and four onshore). These additional fields have contributed to the increased production of gas from the main pipeline systems seen during 1998.

8.11 After taking into account the 2.9 million cubic metres of gas landed in the Netherlands from the UK share of the Markham transboundary field and from the Windermere field, of gas exported to Eire from Scotland, and gas exported to Belgium via the new gas interconnector at Bacton, total sales of UKCS gas to UK gas suppliers amounted to 86.2 billion cubic metres (3.04 trillion cubic feet) in 1998. This was 2.7 per cent higher than in 1997. In addition 0.9 billion cubic metres (0.03 trillion cubic feet) of gas were imported, making up 1.1 per cent of total gas supplies in the UK in 1998, compared to 1.5 per cent in 1997.

8.12 Table 8.2 below shows details of the top ten gas producing fields in 1998. Some of the details for these fields have only previously been released as part of overall totals for the gas pipeline systems the fields form part of, for example, the Brent field is part of the Far-north Liquids and Associated Gas System (FLAGS). However, additional data is now available which has allowed us to separate out the data for individual fields. Work will be carried out during 1999 to increase the level of field detail available for all pipeline systems: these will appear in the equivalent of Appendix 7 in next year’s report. Chart 8.3 shows details of gas production by field in 1998. More information on gas production can be found in Appendix 7.

Chart 8.3 - 1998 gas production by field (billion cubic metres)

Table 8.2 - Top ten UKCS gas producing fields in 1998

To download this table click the appropriate format: Excel 4 or CSV file.

8.13 Table 8.3 shows detail of the sources of UKCS natural gas received at UK gas terminals in 1998. The terminals operating at Bacton accounted for 22 per cent of the gas supplied into the UK in 1998.

Table 8.3: Gas terminals receiving UKCS Natural Gas in 1998

(1) Excludes 0.9 billion cubic metres exported from the Markham and Windermere fields and 0.3 billion cubic metres produced at onshore fields.

GAS FLARING

8.14 Under the terms of petroleum production licences, gas may be flared only with the consent of the Secretary of State. During 1998 an average of 5.49 million cubic metres of gas a day was flared at offshore installations. This represents a fall of just over 2% over 1997, despite new fields coming into production.

8.15 Flaring at onshore fields was minimal during 1998.

8.16 Appendix 8 shows levels of gas flaring against oil production in recent years. Appendix 9 gives details of gas flaring from oil terminals and producing offshore fields.

OFFSHORE PIPELINES

8.17 During 1998, there were 36 submarine pipeline works authorisations for the construction and use of 424 additional submarine pipelines. As in previous years, the majority of these were infield flowlines associated with field development. Pipelines brought into use for the first time during 1998 included 1 trunk line and 23 interfield pipelines, these have been added to the list of operating oil and gas pipelines in Appendix 11.

8.18 1998 saw several important field start-ups including: Schiehallion, the second oil field to be commissioned in the deep Atlantic Frontier waters, West of Shetland; the initial fields of the Eastern Trough Area Project (ETAP) and Britannia. All of these developments contain complex infield pipeline infrastructure, Britannia also has a dedicated pipeline carrying export gas from the field ashore to the St Fergus terminal in North East Scotland. Both the Shearwater-Elgin Area Line (SEAL) and a gas export/import pipeline for Alba were authorised and constructed during 1998. The former is the longest pipeline in UKCS waters, the latter will serve to substantially reduce gas flared from Alba, as well as providing a source of fuel in future years.

8.19 During 1998, there was increased interest from industry in the use of temporary pipelines and facilities to allow hydrocarbons to be saved, rather than flared, during short-term well testing operations. This is something that we wish to encourage and seems set to be an expanding area for pipeline works authorisations.

8.20 NGLs continued to be brought ashore with crude oil supplies via major terminals and also through the Far-north Liquids and Associated Gas System (FLAGS), Fulmar, Frigg and Scottish Area Gas Evacuation (SAGE) pipeline systems to St Fergus. Small amounts of NGLs are also brought ashore via the Central Area Transmission System (CATS) terminal, and through the Norpipe system, to Teesside.

8.21 Production of NGLs in 1998 was 8.4 million tonnes, including 1.7 million tonnes of condensates.

8.22 The largest quantities of NGLs were piped to Mossmorran and Kerse of Kinneil for fractionation.

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Title | Table of Contents
Chapter 1 | Chapter 2 | Chapter 3 | Chapter 4 | Chapter 5 | Chapter 6 | Chapter 7 | Chapter 8 | Chapter 9
Appendix 1 | Appendix 2 | Appendix 3 | Appendix 4 | Appendix 5 | Appendix 6 | Appendix 7 | Appendix 8 | Appendix 9
Appendix 10 | Appendix 11 | Appendix 12 | Appendix 13 | Appendix 14 | Appendix 15 | Appendix 16 | Appendix 17
Index Map | Plate 1 | Plate 2W | Plate 2E | Plate 3W | Plate 3E | Plate 4W | Plate 4E | Plate 5W | Plate 5E | Plate 6
Plate 7 | Plate 8W | Plate 8E | Plate 9W | Plate 9E | Plate 10W | Plate 10E | Plate 11 | Plate 12 | Legend
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