Britain’s offshore industry group Oil & Gas UK has said investment in extracting oil and gas from the UK’s continental shelf is expected to reach an all-time high of £13.5bn in 2013.

The group said in its 2013 Economic Report, published on 21st August, that renewed commitment from the government and industry to extract oil and gas from the continental shelf has been successful in promoting the investment.

Oil & Gas UK’s chief executive, Malcolm Webb, said: "The recent sharpening of focus within government and industry on the business environment required to grow that contribution in future has given investors the confidence to develop new fields and redevelop older fields, so we are now seeing the highest-ever investment."

"This is heightening the business opportunities for the UK’s world-renowned supply chain and is boosting employment to 450,000 jobs across Britain," Webb added.

The UK’s supply chain currently earns sales of £27bn annually, which also includes £7bn in exports.

According to the report, the current unprecedented investment will lift production, bringing with it significant funds for the public purse.

"The UK’s supply chain currently earns sales of £27bn annually, which also includes £7bn in exports."

Webb said the industry is the UK’s largest industrial investor and contributor to gross value added.

"With 15 to 24 billion barrels of oil equivalent (boe) still remaining to be developed, the UKCS possesses great potential for contributing to economic growth for decades to come."

The UK Government said oil and gas will still provide some 70% of the UK’s total primary energy in 2030.

In 2012, only nine new fields with total reserves of 146 mmboe had commenced producing, while 15 fields, with combined reserves of 470 million boe, are anticipated to come onstream in 2013.

The Banff, Gryphon and Elgin fields are also coming back onstream, but over the year, production is now forecast to fall to a range of 1.2 to 1.4 mmbpd.

Webb said: "Despite impressive investment in new developments, the production efficiency of existing assets remains in worrying decline. DECC and the industry are working to tackle this serious concern through a joint task group."

"The Wood Review, which is currently examining how to maximise UKCS recovery, is also very timely and we very much look forward to seeing the recommendations early in 2014."

Image: Elgin-Franklin Offshore Field, North Sea, UK.

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