Set against the backdrop of the Wood Review and “lower for longer” oil prices, the North Sea oil and gas industry is undergoing a significant period of change. And as the pressures to transition to a lower carbon world mount following the COP21 initiative, this may suggest the basin’s days are numbered. Or are they?
We interviewed more than 30 senior stakeholders from the UK, the Netherlands and Norway, across the value chain in the North Sea. This report is the culmination of their insights and views on the state of play in the North Sea, alongside some potential solutions for sustainable success.
The general consensus is that the North Sea does have a future. However, a number of fundamental issues will need to be addressed in the next 24 months if the basin is to avoid a rapid and premature decline.
The North Sea is an exciting prospect play with potentially 20-30bn boe of undiscovered resources – particularly West of Shetland, the Atlantic Margin and on the UKCS/NCS border;
Window of opportunity
Some say there are 24 months to turn around performance. Time is of the essence if a suite of solutions can be deployed to rescue the basin;
Significant progress has been made with the Wood Review, establishing the Oil and Gas Authority, the favourable changes in taxation – but there is more still to do;