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.
Your personal credit score plays an important part in securing new loans and credit, and can affect your financial life for better or worse. Lenders use the information in your credit file to determine whether you present a high risk of default, and if your credit score is low, you may find it difficult to […]
Credit unions offer a range of financial products including current accounts, savings accounts, and loans, and can be a good alternative to banks and building societies whilst also helping your cash flow. There are credit unions all around the UK, almost 100 of them operating in Scotland. They’re not always widely advertised, however, and although […]
It’s a worrying situation when you realise your outgoings exceed your income, and it can be difficult to prevent debt in this situation, but there are solid steps you can take to get back on track – you just need to act quickly. Increasing your income or reducing the money going out are essentially what […]
If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work. As far as your old employment is concerned, it’s important that you check your final wage slip to […]
If you are a Scottish resident in financial difficulty, you may have entered into a Trust Deed in order to restructure debt repayments to creditors. A Trust Deed is a fixed voluntary agreement made between the debtor and creditor, with the help of a trustee. Debt is broken down into smaller, affordable instalments, typically lasting […]
A Debt Arrangement Scheme (DAS) is a government backed scheme which allows you to repay debt through contractual, monthly instalments without the threat of legal action and incurring penalties or interest. The scheme was established in 2004 for Scottish residents in debt, providing an alternative solution to sequestration, the Scottish equivalent of bankruptcy. A Debt […]