Oil Industry – Where now?
Price of Oil now looks to have relatively stabilised at the $40-$55 per barrel range. The previous assumptions of $100+ price and a long-term yearly increases due to limited supply have been discredited.
Therefore where now for the North Sea? It remains a major reservoir but declining production volumes, with harsh environment and high costs. When the Oil price collapsed from over $100, the emphasis was on survival. Regrettably, there have been a significant loss of jobs and capacity. Now there is a need to look at costs and efficiencies. It is now an opportunity for new approaches, new collaborations and new technologies to maximise the return on existing fields & reduce the cost of new fields.
Additionally there is the increased safety and environmental emphasis after Macondo well / Deepwater Horizon disaster. The result is maximising the returns from the existing infrastructure. Additionally, there are opportunities in the onshore Fracking, which at long last look to be starting, with the changed Planning approval process.
If new solutions give benefits in the North Sea, there are worldwide opportunities