UK North Sea oil regulator raises its forecast for investment and production

Britain's North Sea Transition Authority, which regulates oil and gas production in the region, has raised its investment and output forecasts following unexpectedly strong results for 2024. Capital investment hit 5.95 billion pounds ($7.675 billion) last year, exceeding expectations by more than 50% despite higher taxes and political instability.

Despite an expected drop in investment this year to 4.8 billion pounds ($6.192 billion), the figures remain significantly higher compared to previous forecasts made after the new Labor government raised taxes. Recent development of major projects contributed to the upward revision of the forecast.

When updating the forecasts, experts considered current production data. In 2024, daily production reached 1.09 million barrels of oil equivalent, surpassing October estimates by 20 000 barrels. However, experts assume that production volumes will decline almost twofold to 0.62 million barrels per day by the end of the decade. The main reason for this will be the depletion of reserves at the fields that have been actively developed for a long time.