Report Unveils Worth of Gatwick Oil to UK Economy

Soon to be more than just home to one of London’s busiest airports, a new report has just revealed that the high profile Gatwick oil venture could add billions to the UK’s economy. With North Sea production in rapid decline, analysts are predicting that increased activity in the South of England could help offset the gap, and revive the nation’s struggling oil and gas industry.

Gatwick drilling projects set to take flight

UK Oil & Gas (UKOG) is fronting the venture, with plans to extract oil from in and around the Gatwick region. Prominent consultancy group EY was commissioned to draft a forecast, predicting that the project could generate between £7 - £52 billion over a 40-year period. In four decades, this could see total oil production span anywhere between 140 million and 1.125 billion barrels.

Is UKOG too confident?

The outlook is optimistic, and some sceptics have criticised the report for its assumptions regarding the number of sites and wells needed to recover the reserves. 300 wells drilled across 25 locations is the group’s lowest figure, with high end scenarios hitting 2,400 wells across 100 Gatwick locations. As well as sparking opposition from environmentalists, the ambitious figures are also cited as unrealistic by the wider petroleum industry.

Criticism from environmentalists

Friends of the Earth south east campaigner Rachel Kennerley has publically opposed the plans, warning that "Drilling huge numbers of wells across the south east could pose a significant risk to communities, and their environment. She adds, "If we're to avoid the worst impacts of climate change we must leave fossil fuels in the ground, and develop a modern, renewable and efficient energy system instead."

Sanderson promises a local injection of cash and jobs

But scepticism isn’t raining on the UKOG parade, with chief executive Steve Sanderson maintaining that the Weald region is hugely lucrative. Spanning across Kent, Sussex, Surrey and Hampshire, Sanderson is confident that the geological formation could house up to 100 billion barrels of oil.

"This report confirms UKOG's view that the development of Kimmeridge Limestone oil in the Weald basin can make a very significant contribution to the economy, employment and energy security of the UK," he comments.

From a local economic perspective, EY estimates that the ongoing project could generate around 994 to 5,607 jobs per year, with payouts to communities ranging from £77 to £557 million. That said, as the oil and gas supply chain is largely centred in Scotland and the North of England, 40% of the economic benefits will likely trickle out to other areas of the UK.

Should the project go ahead, a significant portion of recovered oil will likely be refined into jet fuel. ‘The Future of Jet Fuel Thermal Oxidation Heater Tube Scanning’ takes a closer look at this branch of the oil and gas industry, and how thermal oxidation testing is becoming increasingly important to the aviation sector.