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Domestic oil output steady in 2007

Posted: Thursday, July 31, 2008, 17:55 (BST)
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Crude production was steady in 2007 from the previous year as new oilfields came onstream to offset drops in output from older oil wells in the North Sea, a government report said on Thursday.

"Gross production of crude oil and NGLs (natural gas liquids) in 2007 was 76.8 million tonnes, virtually unchanged when compared to 2006," the UK Energy Statistics 2008 report said.

This was about 1.6 million barrels per day, according to Reuters calculations.

However, the 2007 volume was about 44 percent lower than the peak production level of 137 million tonnes in 1999, it said.

"Production from older established fields continued to decline but this fall was offset by nine new fields which started production in 2007, including the very large Buzzard field," the report said.

"Without these new fields, production would have been 13 percent lower than a year ago."

Despite the steady crude oil output, the country had to import crude oil to be processed at domestic refineries. The country has been a net crude oil importer since 2005.

"Exports in 2007 were 11 percent lower than imports," the report said. "Further declines in exports and increases in imports will be seen in future years as indigenous production continues to decline," the report said.

In 2007, about two thirds of the country's primary oil production was exported, with imported crude oil accounting for about two thirds of refinery intake.

The report said refined oil product output from refineries fell 2 percent from 2006 to 81.2 million tonnes in 2007.

Britain exported more oil products than it imported. Oil product imports dipped in 2007 from the previous year.

However, oil product import volumes have been increasing in recent years and the country will continue to experience a surplus of petrol output and tight supplies of middle distillate products, such as diesel and jet fuel, the report said.

The United States remained one of the key markets for British oil product exports. The main sources of products imports in 2007 were the Netherlands, Saudi Arabia, France, Kuwait, Belgium and Latvia, the report said, citing the International Energy Agency as a source.



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