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8/7/2019 oil gas uk development dti
1/27
www.og.dti.gov.uk
OG-LED AND THE UK ONSHOREOIL AND GAS INDUSTRY
GEOFF SWANNSENIOR GEOLOGIST
DEPARTMENT OF TRADE AND INDUSTRY
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Purposeofthe talk
Explain role of OG-LED
Highlight selected issues
Demonstrate that there is a future for the
onshore oil and gas industry
Regulation
Promotion
(Oil and Gas - Licensing, Exploration and Development)
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The new OG-LED organisation and its
objectives
The licensing system Web services and data release
Environmental issues
Coalbed methane and mines gas
Agenda
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Wheredoes OG-LED fit in DTI?
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DTI
Ann Eggington
Markets and Policy
Jim Campbell
Environment &
Decommissioning
Ian Todd
Industry Support
Stewart Robinson
IT
Stephen Byers
Secretary of State for Trade and Industry
Peter Hain
Minister for Energy & Competetiveness in Europe
Sir Michael Scholar KCB
Permanent Secretary
AnnaWalker
Director General Energy
GeoffDart
Director Oil and Gas (OG)
Simon Toole
Director OG-LED
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OG-LED
Exploration
Team
Northern
Area Field
Team
(Aberdeen)
Peter Haile
Promotion Team
Knowledge Team
(data)
&
Onshore
Exploration &Development
Central Area
Field Team
Southern
Area Field
Team
Merged exploration and development into a single team
Simon Toole
Director OG-LED
Mike Hawkins
Licence
administration
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OGsobjectiveis to
To maximise the economic benefit to the UK of
its hydrocarbon resources, taking into account
the environmental impact of hydrocarbondevelopment, and the need to ensure secure,
diverse and sustainable supplies of energy for
business and consumers at competetive prices.
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Objectivesfor 2010 (OGITF Targets)
Production at 3 million barrels of oil
equivalent per day
Investment in UKCS activity sustained at3 billion per annum
Commitment to prolonged self sufficiency
in oil & gas
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UK onshore fields produce c 31 mmboe pa butsome 25 mmboe is from Wytch Farm *
(* 2001 Brown Book operators estimate of peak production. Does notinclude fields in Mining Licences)
Howdoes theonshorefit in?
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Benefitsofthe UKonshoreindustry
Employment
Regeneration - especially in coalfield areas
Local power/gas supply
Technology export and spin-offs
Environment
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The Licensing System
Current status
Future plansOut-of-Round licence awards
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Onshore
licensed
areas
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ML 7 188 km2
Current onshore licences:
AL 4 205 km2
DL 5 42 km2PL 28 1733 km2
EXL 37 6342 km2
PEDL 97 24483 km2
TOTAL 178 32992 km2
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0
2
4
6
8
10
12
14
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
I
I
V
I
Wells anddiscoveries 1990 - 2000
BeckeringPickering
Saltfleetby
Airth
Fiskerton
Airfield
Cold
Hanworth
Keddington
Newton on
Trent
Reepham Cowden
Lingfield
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Healthy licensing position - we want to keep it that way
Range of new developments from mines gas to
Saltfleetby
Successful 9th Round - 43 licences issued Continued interest for both conventional hydrocarbons
and cbm/mines gas
Need more drilling activity
Encourage new entrants Looking for operators to explore new potential
Summary
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OG-LED intends to hold a 10th Round in late
summer/autumn (depends on 20th offshore Round timing)
Discourage acreage banking
Review to ensure licensed acreage is being explored
No waivers on firm wells
Drill or drop options will be enforced
No extensions to PEDL initial terms
PEDL 2nd terms - need development plan approved
before 3rd term commences (no extensions)
Consider changes to model clauses / regulations
Want to remain flexible - what does industry want?
Futureplans
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Out-of-round awards
Only made in exceptionalcircumstances
Generally require 90 day OJ notice
Can be restricted to adjacent licensees Not a back-doorroute to acreage
To facilitate development
Operational reasons
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Webservices
DTI would encourage an onshore website
DEAL - data market place
Web based licence assignment system - by
end 2001
Onshore well and licence data on DTIs
website
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Data Release
UKOGL - a continuing success. Library will
continue to be supported by DTI. Is there
scope for similar initiatives?
Can we publish licence applications and/or
reports?
Need agreement from old and existing licensees
What formats would we use (cost)?
Available for inspection (and copying)?
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Environmental issues
Legislation administered by DETR, EA/SEPA and local
authorities
OG-LED has an advisory role
Landfill Directive - reinjection of third party liquid waste
will be prohibited
Foot and mouth - follow MAFF/local authority guidelines
PEDL doesnot giveright ofaccess
OG-LED will be flexible over drilling andseismic commitments
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Coalbed Methane& Mines Gas
Petroleum Exploration and Development Licence vs
Methane Drainage Licence
MDL - for mine safety purposes only: DTI will not
compromise safe working practices
MDL does not give right to drill for gas but PEDL
holder can not drill over or near a mine
PEDL and MDL holders should reach agreementwithout DTI intervention
DTI will not tolerate back door developments
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Want to know more?
Geoff Swann
020 7215 5062
www.og.dti.gov.uk