The Scottish government announced official statistics for the oil and gas production in Scotland yesterday.
The report reflects the annual results for the calendar years 1998 to 2016 and financial years 1998-99 to 2016-17. It includes estimates up to March 2017 too.
The overall optimistic results in the publication may become a ground for a real stock rush of Scottish oil and gas producers.
Here you can read some of the major conclusions outlined in the paper:
- Scottish Waters produced 82% of all oil and gas in UK during the fiscal 2016-17-year.
- Latest results show that in 2016-17, oil and gas production in Scotland increased by 2.9%.
- There is an increase in the total production within the recent years, although the fact that it remained below its peak.
- The increase in production over the year and an increase in prices at the end of 2016 and beginning of 2017 resulted in an increased sales value by 15.2% compared to 2015-16.
According to the official release of the Scottish Government: “In financial year 2016-17, oil and gas production in Scotland (including Scottish adjacent waters) is estimated to have been 74.7 million tonnes of oil equivalent (mtoe).”
At the same time, the following statistics present the wise management of the Scottish oil and gas production. Oil and Gas Production Statistics show that:
- The estimated to be £8.0 billion capital expenditure on oil and gas production in Scottish waters is down from £10.1 billion in financial year 2015-16 and
- The operating expenditure on oil and gas production in Scotland which is estimated to be £5.9 billion, remains almost unchanged from its level in the fiscal year 2015-16 despite the increase in production.
Since yesterday, the share price of Cairn Energy PLC (LON:CNE), one of the investors’ favourites, jumped up on no significant for the company news.
The recent release of Scottish Oil and Gas Production Statistics may emit positive signals which may support short term positive mood on the Scottish capital market and particularly, on Scottish listed companies operating in the field of oil and gas production.
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