UK oil output sees record fall in 2nd quarter

LONDON: British oil production fell 15.9 percent year-on-year in the second quarter, its biggest drop since quarterly records began in 1995, the UK energy ministry said on Thursday.

"Maintenance and other production issues, alongside the long-term reduction, were the main causes of the decrease," Britain's Department of Energy and Climate Change (DECC) said in a statement.

The statement confirmed industry data showing UK oil output dropped below 1 million barrels per day (bpd) for only the second time in more than 30 years this summer as maintenance exacerbated a steep decline in output from depleted North Sea oilfields.

The British sector of the North Sea pumped just 984,000 bpd of oil in June, down from just over 1 million bpd in May and a peak of more than 2.7 million bpd in 1999, according to industry data.

The ministry said that during the second quarter of 2011 the UK was a net importer of oil and oil products to the tune of 3.6 million tonnes, up from 2.8 million tonnes in the second quarter. The UK remained a net exporter of oil products in the second quarter of 2011, by 2.0 million tonnes.

Overall primary UK demand for oil products in the second quarter of 2011 was 2.1 percent lower year-on-year, it said.

Gasoline deliveries were down 6.7 percent on the year in the second quarter, while diesel deliveries were up 2.0 percent and jet fuel deliveries were up 5.6 percent.

Copyright Reuters, 2011