Chief executive of Oil & Gas UK welcomed the first increase in production on the UK continental shelf for over 15 years.
Deirdre Michie, however, has warned the industry will be "extremely challenged" to sustain growth in 2016. Oil and Gas UK has predicted oil and gas production increased by over 7% in the last year. This increase follows an investment of over £30bn in the last few years,.
The upturn underlines the industry's commitment to the UKCS - which still holds great promise for the future and is vital for the country's security of supply Deirdre Michie, Oil and Gas UK
Ms Michie said: "Government data for the first ten months of 2015 shows that the total volume of oil and gas produced on the UK continental shelf (UKCS) was up 8.6% compared with 2014, with the production of liquids up 10.6% and gas up 6.1%.
"Output in November and December tends historically to be more stable, but even so, Oil & Gas UK now expects year end production for the full year of 2015 to be seven to eight per cent higher than last year.
"Given the difficulties being faced by the industry this is welcome news.
"In February 2015 we predicted a marginal increase in production for 2015, but the industry-wide focus on improving production efficiency coupled with investments of more than £50bn over the last four years to bring new fields on stream across the last twelve months is paying off and yielding a better result."
Ms Michie predicts that there will be job losses in the industry in 2016, but the UK continental shelf still holds great importance.
She added: "The upturn underlines the industry's commitment to the UKCS - which still holds great promise for the future and is vital for the country's security of supply.
"For example, only last week, oil company Taqa announced first production from the Cladhan field north-east of Shetland, estimated to produce 10,000 barrels of oil a day from the UK's waters."