The Scotsman newspaper reports that the study, Prospects for the UK Continental Shelf until 2035, says the British industry's future prosperity will depend on the successful exploitation of many small oil and gas fields and the development of costly enhanced hydrocarbon recovery schemes.
The study also warned that British Chancellor Gordon Brown's recent doubling of the supplementary tax regime from 10% to 20%, on top of the standard corporate tax, could result in ₤1 billion ($A2.5 billion) of investment in new oil discoveries foregone over the longer term.
Aberdeen University economics professor Alex Kemp said a striking feature of the prospects for undeveloped fields was their relatively small size, with average 3P (proved, probable and possible) field reserves estimated at less than 15 million barrels of oil equivalent.
