Oil And Gas Industry : The North Sea And New Zealand

1417 Words Jun 12th, 2016 6 Pages
1. Overview of Oil and Gas Sector in the North Sea and New Zealand
The North Sea is one of the major oil and gas producing region, which of oil and gas production is mainly dominated by Norway and UK accounted for almost 9 percent of world oil and gas production by late 1990. The North Sea has become as one of important oil and gas region in the 1980s and 1990s as an alternative to OPEC supply (Nakhle, 21 April 2016). Figure 5 shows the location of North Sea Oil and Gas Fields.

Figure 5. North Sea Oil and Gas fields (Nakhle, 21 April 2016)

Figure xxx illustrates the historical data on oil and gas production in NZ, Norway, and the UK. It is evident that Norway’s production is the largest, while NZ production is the lowest. However, it seems that NZ’s production has been relatively stable at around 40 thousand barrels per day since 2000, while the North Sea countries’ production except Norway gas production tend to decline since 2000.

Figure 6. Oil and Gas production in NZ and Norway (Calculated from EIA (2016)

2. Benchmark
The review of oil and gas policy is conducted by considering both investor and country perspective as shown from this following table:
Table 4. List of consideration in investor and government perspective (Van Campen, 2016)
Investor Perspective Nation/Government perspective
Best returns in cost-benefit analysis over time NPV
Resources ownership
Opportunity cost of capital Government revenue
Project risks Less-Import dependence from oil import…

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