World offshore oil, gas production has risen 'steadily'
Total estimates of worldwide offshore oil and natural gas production have risen "steadily" over the last 10 years.
World offshore oil production reached 1.257 billion tonnes in 2003, about 34.1% of total world oil production. World offshore gas production, meanwhile, totaled 685.6 billion cu m in 2003, or about 25.8% of total world gas production.
These findings were reported in a study released last month by Inverness-based Mackay Consultants Ltd., a Scottish economic consulting firm specializing in the offshore oil and gas industry.
"The offshore sector's shares of total oil and gas production have increased steadily over the past decade," Mackay concluded.
In 1992, according to Mackay, the offshore sector's share of world oil production was 26.5%; this share increased to 34% in 2002. Similarly, the offshore sector claimed 18.9% of world gas production in 1992, a figure that rose to nearly 25.4% in 2002.
Mackay's annual report gives estimates of offshore oil and gas production from every country in the world with offshore output, the firm noted.
The data are collected from various sources, including government departments, oil companies, and other bodies.
Offshore oil production
In 2003, Mackay said, total offshore oil production increased 3.7% in 2003 from the prior year, which was a little higher than the 3.5% rise in total world oil production seen in 2003.
What is important to bear in mind, the firm said, is that total world oil output declined in 2001, by 0.6%, and in 2002, by 0.7%, mostly due to cuts by most Organization of Petroleum Exporting Countries' members.
Therefore, Mackay said, the increase in total world oil production for 2003 was "untypically large." Mackay added that during 1992-2002, the average increase in total world oil production was 1.1%/year.
At 3.7%/year, the increase in total worldwide offshore oil production has been more than three times the overall increase in total world oil production, Mackay calculated. "We expect it to continue to be much higher over the next few years," it added.
Offshore oil production has increased in every region of the world in 2003 vs. 2002 except for the North Sea-Western Europe, Mackay said. Output for that region, although accounting for the largest share of offshore production at 21.9%, has been in decline in recent years.
The largest regional increases in offshore oil production in 2003 were from the Middle East 11%, North and Central America 7.3%, and South America 6.8%, Mackay reported.
Offshore gas production
Total offshore gas output increased 6.8% during 2003, Mackay said. This compares with the estimated 5% rise in total worldwide gas production for the same year.
During 1992-2002, worldwide gas production increased an average of 2.2%/year, or nearly double the average for oil production during the same decade-long time period, Mackay reported.
In 2003, offshore gas production increased in every region of the world except the Caspian Sea, where there was a 2% decrease vs. 2002 production.
The largest regional producer, the North Sea-Western Europe region, had a relatively small 1.7% increase in production in 2003, Mackay reported.
There were declines seen in gas production from off the UK and the Netherlands, but increases in production from off Norway, Mackay said.
Small increases, about 2.1%, were seen in 2003 gas production off North America.
"Gas production in these regions in the past has been constrained by a lack of commercial markets for gas," Mackay noted, adding that such markets now are being developed.
