§ Mr. Michael Lathamasked the Secretary of State for Energy what is the current average estimated extraction cost, assuming no level of profit but all outgoings covered, of North Sea oil, expressed in dollars per barrel; and, from information available to him from external sources, what is the current equivalent figure for oil extracted from Middle Eastern countries.
§ Dr. J. Dickson MabonThere is a considerable range in the unit costs of extraction as between different fields in the two areas. However, from the information available, unit extraction costs for the 14 North Sea commercial oilfields are estimated to be in the range $2-$7 per barrel, at today's prices and exchange rates. The equivalent range for oil extracted on-shore from major long-established Middle Eastern fields is estimated to lie between $0.15 and $0.50 per barrel. Production from newer fields, particularly small offshore fields, is much more costly, but it is not possible to produce a meaningful average.