North Sea oil output falls 10% in year

British oil production fell by 10% last year, one of the fastest rates of decline in the world, figures published by BP showed yesterday.

The slump was second only to Australia, and came as global primary energy consumption beat all previous records, growing 4.3% in 2004, according to BP. Chinese demand rose 15% over the 12 months. It has increased 65% in three years.

The BP figures were released as crude oil futures remained above $55 a barrel after a rally on Monday. The high oil price has led to a resurgence of interest in the British sector, with firms applying for 279 exploration blocks in the latest licensing round, the energy minister, Malcolm Wicks, said. It is the largest number for 30 years. North Sea producers pumped 2,029,000 barrels over the year; 228,000 fewer than in 2003.