Reinvented North Sea Oil, Gas Industry Looks To Brighter Future

UK Oil & Gas Economic Outlook 2018 revealed an improved landscape for the U.K. offshore oil and gas industry with reduced costs, competitive fiscal terms, improved operational performance and more stable oil and gas prices.

The sector is emerging from one of the most crippling and challenging downturns, and steps taken to date in response to the collapse in oil price have delivered tangible results.

However, even with higher oil and gas prices, cost control and capital discipline remain high on operators’ agendas. The report shows companies indicate that any new investments need to break even at lower prices, often in the region of $40 to $50 per barrel of oil equivalent.

The fact that six major new capital projects have received operator approval in the first eight months of the year, two more than 2016 and 2017 combined, demonstrates the basin’s improved competitiveness, according to the report.