The shutdown of oil pipelines at the Sullom Voe terminal in Shetland will only be a “mild irritant” to operators, according to a leading petro-economist.
A leading oil economist has warned that a worldwide drop in crude prices could impact on future North Sea projects designed to maximise recovery from the UKCS.
More re-engineering of the UKCS fiscal regime may be necessary before a possibly significant slice of known and potential oil & gas resources in the North Sea can be pursued and developed, according to new research.
The UK treasury made a multimillion-pound loss on North Sea oil and gas for the first time in 40 years. Thanks to the plummeting oil price, dipping government revenues were outweighed by repayments to producers in the first six months of this financial year. It is thought to be the first loss recorded over a six-month period since the industry was established. Scottish energy minister Fergus Ewing insisted that oil and gas could proposer for decades in the North Sea – but opposition parties suggested the revelation reflected the benefits of being part of the UK.
Kemp says low oil price will lead to ‘greater emphasis’ on cost reduction but will curtail new investment
Leading oil and gas economist Professor Alex Kemp said a continued low oil price could lead to a "greater emphasis" on cost reduction, but was also likely to curtail investment in new fields and exploration. Prof Kemp made the analysis after Asco chief executive Alan Brown exclusively told Energy Voice he thought a continued oil price of $50 a barrel could be a "very good" thing for the North Sea. Brown said it would force greater collaboration between the operators and supply chain as companies were forced to work more closely together.