Oil & Gas Trade Body Raises Alarm Over Accelerating Pace of North Sea Decommissioning
February 24, 2016
Oil & Gas UK, the trade body representing the interests of offshore energy producers throughout the country, has raised serious concerns about ominous trends within its industry.
Of particular concern for the organisation is the pace at which fields producing oil and gas off the coasts of Scotland are being decommissioned.
According to the trade body, the rate of decommissioning in the North Sea is accelerating at a worrying rate and estimates on the number of fields there that will cease production between 2015 and 2020 have risen by 20 per cent over the past 12 months.
Furthermore, a new in-depth report from Oil & Gas UK has shown that while significant efficiency gains have been made in the energy sector in recent years, “exploration remains at an all-time low with no signs of improving”.
The most obvious source of pressure on the oil and gas industry, which is a major employer in many parts of Scotland, is the falling price of oil worldwide.
In the context of oil and gas production from the UK Continental Shelf (UKCS), the fall of oil prices to $30 per barrel has been devastating and many companies have been forced to cease their operations entirely as a direct result in recent quarters.
Oil & Gas UK estimates that if oil prices remain at $30 per barrel throughout the rest of 2016 then around 43 per cent of all the UKCS oil fields are likely to be operating at a loss.
“The basin has to compete fiercely in the global market to attract price-constrained capital to the UK. A coherent approach by the industry, regulator and government will be critical to boost the industry’s competitiveness and its investors’ confidence,” said Deirdre Michie, the trade group’s chief executive in a statement.
“We have a huge task ahead but the prize is worth fighting for,” she said.
“The UKCS still holds up to 20 billion boe [barrels of oil equivalent] which can continue to provide a secure supply of energy for the country, support hundreds of thousands of jobs, generate several billion pounds in corporate and payroll taxes from the supply chain and stimulate countless technological innovations.”
If you are worried about your personal finances and struggling to control your debts then Scotland Debt Solutions may be able to help. Call us today to arrange a free consultation.
The start of a new year is the perfect time to take stock of your finances and put plans in place for a financially savvy year ahead. While you may feel your problems are insurmountable, there are always things you can do to help, most of them surprisingly easy. Here are 7 ways you can […]
If you have credit card debt which is attracting a high level of interest, moving this balance onto a lower interest card could save you a considerable amount of money. This process is known as a ‘balance transfer’, and if done correctly, this process could save you money and also reduce the time it takes […]
Many thousands of young Brits are being actively encouraged towards taking on debt and spending borrowed money even before they reach their 18th birthdays. That’s according to the price comparison website comparethemarket.com, whose research suggests that roughly one in four 16 and 17 year olds in the UK have been offered credit cards or asked […]
If you’re in serious debt with no hope of repaying your unsecured creditors, you don’t have to wait for a creditor to take legal action against you. You may be able to take matters into your own hands and apply for sequestration (bankruptcy in Scotland). This also prevents your situation from worsening. There are two […]
If you’re looking to save some money it’s a good idea to make a detailed budget that lets you see where your cash is currently being spent, and offers an overall view of your finances. You’ll need to collect together your income and expenditure details, including annual costs such as insurance, car expenses, birthdays and […]
Scotland has a number of formal debt solutions that can help you deal with a difficult financial situation. It’s advisable to take action as soon as possible, however, to prevent your levels of debt escalating when interest and other charges are added. Obtaining professional advice is key in this respect. An approved money advisor or […]