Despite reduced costs and efficiency improvements, the UK oil and gas industry could lose its significance as a key contributor to the UK economy and energy supply, due to record low drilling activity and lack of new project approvals, Oil & Gas UK, the main representative body for the UK’s offshore industry, warned in its Economic Report 2018 published on Tuesday. Offshore in the UK, operating costs have halved and are now being sustained at around $15/boe, Oil & Gas UK said , but the recovery has yet to be felt across the entire sector. Low drilling activity is the key concern for the industry body, which noted that just four exploration wells were spudded in the first eight months of 2018. Even if more wells were to be drilled yet this year, total exploration activity on the UKCS is expected to be at its lowest since 1965. “Industry […]