Europe & Russia: Production

Low prices may hit UK gas production in the coming years, which could intensify the decline in output.

The UK’s gas output looks set to fall over the next five years, with lower oil and gas prices making a decline more likely. Lower prices have hit investments in exploration and production in recent months, and this will limit the upside for additional production. Much of the acreage in the UK Continental Shelf (UKCS) has already been largely exploited and lower prices also make some of the UK’s remaining reserves uneconomical to produce. With the outlook for oil and gas prices remaining relatively weak over the next few years, the share of economically viable production from the UKCS will fall.