33% Of North Sea Oil Is Now Too Expensive To Extract – OilPrice.com

The oil value collapse will lead to one-third of the North Sea oil left untouched as a result of it is going to be uneconomical to supply, a brand new research from the College of Aberdeen confirmed on Wednesday.

In keeping with the research led by Economist Professor Alex Kemp and Linda Stephen from the College of Aberdeen, even when Brent Crude costs had been to commerce at $45 a barrel, as a lot as 28 p.c of the oil left within the North Sea wouldn’t be economical to extract. At $25 a barrel oil, a complete of 35 p.c of accessible oil within the North Sea might not make it out of the bottom.  

“The way forward for the UKCS (UK Continental Shelf) on the oil and fuel costs employed on this research relies upon critically on technological improvements which might considerably improve productiveness,” the oil economists stated within the research as carried by the BBC.

“At low costs, fields are faster to achieve the tip of their economical lives,” Professor Kemp instructed Night Specific.

“Though which means decommissioning prices could also be decrease, we’re nonetheless going through a particularly troublesome interval for the trade,” the economist famous.

Commenting on the research, the main trade affiliation of the UK offshore trade, OGUK, stated by way of market intelligence supervisor Ross Dornan:

“We all know that low oil and fuel costs, together with the influence of Covid-19 on operations, have created a really unsure outlook as this report factors out.”

“Remaining as aggressive as potential to draw funding, alongside progressive and versatile approaches and enterprise fashions, will likely be required to make sure we cannot solely proceed to fulfill as a lot of the UK’s vitality wants from home oil and fuel, but additionally put together the UK to completely capitalise on web zero alternatives of the longer term,” Dornan added.

Final month, OGUK warned that as much as 30,000 jobs could possibly be misplaced within the UK North Sea oil and fuel sector.

By Tsvetana Paraskova for Oilprice.com

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