More than a third of the hydrocarbons beneath UK waters could remain in the ground if oil prices remain at depressed levels, according to a report that lays bare the extent of the crisis hitting the North Sea industry. A study co-authored by Alex Kemp of the University of Aberdeen, a respected petroleum economist, on Wednesday warned that 36 per cent of all estimated available hydrocarbons in the North Sea were likely to remain undeveloped between now and 2050 at oil prices of $35 a barrel. Brent crude is currently trading at about that level after last month dropping below $25 a barrel for the first time in 17 years. The plunge in oil prices this year, caused by a slump in demand during the coronavirus pandemic, has thrust the North Sea into a fresh crisis that has raised further questions over the long-term future of the half-a-century-old basin.
FT 19th May 2020 read more »
Over a third of North Sea oil and gas reserves may be uneconomical to extract, according to a new report that casts a shadow over the sector. Some academics and politicians say the research, by the University of Aberdeen, diminishes the economic argument for Scottish independence. The researchers have found that an oil price of $25 a barrel means that more than 3.9bn barrels – which accounts for 35pc of all available hydrocarbons in the North Sea – will be unprofitable to produce.
Telegraph 20th May 2020 read more »