THE strong interest shown by oil and gas firms in the latest North Sea exploration licensing round provides another indication a badly-needed recovery is under way in the area.
Read more: Huge increase in exploration in prospect off Shetland
However it has to be remembered that any increase in drilling activity off Scotland would be from a very low base.
Just 14 exploration wells were drilled in the UK North Sea in each of the last two years. That compares with an average of around 40 a year in the 1970s.
All the same, the head of the Oil and Gas Authority, Andy Samuel, reckons the results of the latest licensing round prove there is still significant appetite for exploration in the North Sea.
Majors and independents alike bid successfully for acreage in the relatively under-explored West of Shetland area.
Stressing the OGA is more concerned about quantity than quality, Mr Samuel notes that high success rates have been achieved in recent years.
Oil and gas firms have focused lots of attention on areas close to existing production hubs, in which they can develop finds much faster than in frontier areas.
US giant Apache made a find earlier this year that it may be able to bring onstream within six months.
Meantimes, advances in technology and efficiency gains are encouraging firms to look again at existing finds that have not been developed.
The enthusiasm shown for the West of Shetland area by majors such as BP, Shell and Total in the latest round may partly reflect the fact they have developed fields in the area recently – long after the relevant finds were made.
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