Study predicts modest pace for Atlantic Frontier development

An element of caution about the future scale and pace of development in the Atlantic Frontier of the UK, Norway and Ireland is sounded by energy analyst Wood Mackenzie in its latest study of the area and the exploitation so far by the oil industry. Wood Mackenzie notes that there has been a considerable interest and commitment to the NW Europe Atlantic Margin by major global upstream players and a number of smaller independents and that advances in drilling and production technology, coupled with competitive fiscal regimes particularly in Ireland and the UK, have ensured that the economics of field developments remain among the most attractive on a global basis. However, the analysis suggests that it will be the early part of the next century before the results of upcoming drilling programmes confirm whether this initial optimism is well founded - particularly given the recent indications of the presence of substantial gas volumes. It concludes that 'only then can the NW Europe Atlantic truly be regarded as a prospective frontier hydrocarbon province which can compete on a global basis.