Extra 1.1bn barrels of oil found in North Sea

Core Insights - The North Sea Transition Authority (NSTA) has reported an additional 1.1 billion barrels of oil and gas discovered in the North Sea, raising the total potential resources to 15.8 billion barrels from previous estimates of 14.7 billion barrels [1][4]. Industry Overview - The NSTA's report indicates that the findings stem from surveys conducted under the last licensing round in 2022, prior to the ban on new oil and gas exploration imposed by Ed Miliband [2][3]. - The report highlights that the UK oil and gas industry is facing increasing scrutiny and criticism, particularly from Labour, regarding its decision to limit exploration in the North Sea [2][3]. Resource Classification - The remaining resources are categorized into proven reserves (2.9 billion barrels), contingent resources (5.3 billion barrels), and prospective resources (15.8 billion barrels), with the latter category showing a significant increase due to new data [4][5]. - The total potential resources, if fully proven, could amount to an additional 25 billion barrels [5]. Future Exploration Potential - There are still unexplored areas around the UK that may contain further oil and gas reserves, indicating the possibility of discovering more resources in the future [6][7]. - The report notes a 31% increase in prospective oil and gas resources from the end of 2023, attributed to the inclusion of additional resources from the 33rd licensing round [7][8]. Industry Implications - Martin Copeland, CFO of Serica Energy, emphasized that the NSTA report suggests at least 11 billion barrels of oil and gas could still be developed, which aligns closely with the Climate Change Committee's projected needs of 13 to 15 billion barrels before the net zero target year of 2050 [8].