UK To Get Hands-On In Quest For Remaining North Sea Oil
An interim report from the government's review - chaired by industry veteran Ian Wood - estimated as much as 24 billion barrels of oil could still be produced, worth about $2.6 trillion at current prices.
But the oil is getting harder and more expensive to recover. And many of the firms with the skills to do so complain they can't get access to the infrastructure they need because it is owned by major oil companies that are focused elsewhere in the world and see little benefit from helping competitors.
High costs, including wages and taxes, are also making oil firms think twice about the North Sea. In November, for example, Chevron cast doubt over its Rosebank project in the region, estimated to have cost $8 billion, saying it did not currently offer "economic value".
There is also political uncertainty, with BP warning this month that the industry could face extra costs if Scotland votes for independence in a referendum in September.
No Easy Answers
The interim report from the Wood Review in November suggested the government should set up a stronger regulator for the industry to ensure companies work together in a way that "maximises economic recovery" of oil in British waters.
That could follow the model of Norway, where the NPD regulator is mandated both to drive cooperation between oil firms and to impose Norwegian law - which requires that resources are developed optimally.
The NPD, however, has been operating for around forty years and employs about 200 highly-skilled people with an in-depth knowledge of the North Sea, something which industry watchers say will not be easy to replicate in a short space of time.
1234
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- USA Commercial Crude Oil Inventories Increase
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call