A new study from the University of Aberdeen authored by Professor Alex Kemp and Linda Stephen entitled The Potential Contribution of Cluster Developments to Maximising Economic Recovery in the UKCS has studied the development economic aspects of over 400 undeveloped discoveries (termed technical reserves) in the UKCS. The majority are quite small with most having less than 20 million barrels of oil equivalent (mmboe) but in total summing to 6.67 billion boe.
The study finds that on a field stand-alone basis and with updated, revised estimates of development and operating costs, and with investment hurdles reflecting continued capital rationing the numbers of commercially viable developments were quite low with screening prices of $60 per barrel and 40 pence per therm. Reserves of 0.62 billion boe were recovered. At screening prices of $50 and 35 pence none of the fields passed the investment hurdle on a stand-alone basis. With $70 and 60 pence prices many more fields become viable on a stand-alone basis and reserves of 3.15 billion boe were recovered.
