Oil down, gas steady

Oil production by the four main North Sea countries declined sharply last year while gas output fell slightly. With the UK's gas decline likely to be matched by Norway's growth over the coming few years, the make-up of the area's hydrocarbons output – at present a 50:50 split between oil and gas, on an energy-equivalent basis – is set to swing towards gas, as oil output falls. Licensing rounds in the UK, Norway and Denmark should maintain the exploration interest this year, Martin Quinlan writes