There is clearly an increasing demand for British oil from the North Sea, as United Kingdom sets to become a net crude oil exporter for the first time in more than a decade, by increasing its output from 914,000 barrels per day in 2017 to one million barrels per day or more.
This is exciting news as British crude production levels declined steadily from 2000 to 2014 according to BP Plc whose data includes natural gas liquids.
According to JBC Energy GmbH, an Austrian research firm, some new projects in the North Sea will be coming on stream this year which would lift the nation’s crude output above 1 million barrels a day, allowing overseas
sales to overtake imports.
The Vienna-based researcher said there was potential for the U.K. in returning to being a net exporter as refiners in the U.S. Gulf of Mexico are now buying the most oil from the U.K. since late 2010 because of the
crisis in Venezuela.
Analysts are also optimistic despite the refinery consolidation which cut the nation’s ability to process domestically by over 420,000 barrels a day, as JBC analyst Eugene Lindell said “the combination of rising supply and ailing demand is pushing the U.K. crude balance from one of deficit to surplus,” he said.
However, the possibility of becoming an Organization of Petroleum Exporting Countries (OPEC) member is almost improbable on both sides right now, as members are expected to export way more than they import and the British economy is also based on financial services and other industries and not the production of petroleum.