Arab Today, arab today low oil price could force 140 north sea oil fields to close
Last Updated : GMT 00:14:54
Arab Today, arab today
Arab Today, arab today

Low oil price could force 140 North Sea oil fields to close

Arab Today, arab today

Arab Today, arab today Low oil price could force 140 North Sea oil fields to close

Oil fields in Britain's North Sea
London - AFP

Low oil prices could force the closure of around 140 oil fields in Britain's North Sea in the coming five years, according to a report released Wednesday by consultants Wood Mackenzie.

Wood Mackenzie forecast that the number of fields would become economically unviable even if the price of Brent crude extracted from the North Sea returned to around $85 per barrel from the current level of around $50.

"A high oil price (in 2011-2014) has enabled operators to extend field life and delay decommissioning time ... however the current low oil price has brought into stark relief that this cannot continue indefinitely," Wood Mackenzie wrote.

The fall in crude prices by around 60 percent since June 2014 has in particular weighed on the ageing oil fields and platforms in the North Sea.

"Last year, more was spent than was earned from production, a situation which has been exacerbated by the continued fall in commodity prices," said Deirdre Michie, chief executive of Oil & Gas UK industry association, which released a similar report on Wednesday.

"This is not sustainable..." she added.

Oil & Gas UK's report found that the sector has cut 65,000 jobs since the start of 2014 from its peak of 440,000.

In the current context, oil firms are likely to shutter more fields, said Wood Mackenzie.

"The fields most likely to be decommissioned are uneconomic without high oil prices to justify escalating maintenance costs and declining production which are unable to support the high operating costs," said Fiona Legate, Wood Mackenzie's analyst for UK upstream research.

Low oil prices could also force the postponement or even cancellation of the 38 new North Sea fields expected to open in the coming five years, the consultancy warned.

The extreme depth of the North Sea deposits makes them costly to recover.

But Oil & Gas UK was more cautious in its outlook.

"The industry is determined to avoid premature decommissioning and retain the infrastructure required to" get as much oil as economically viable out of the North Sea, said the report.

It estimates only around two thirds of recoverable fuel have been extracted.

Not only has the government cut taxes and taken other measures to help, but Oil & Gas UK expects the industry will have reduced the cost of operating their existing assets by 22 percent by the end of 2016.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today low oil price could force 140 north sea oil fields to close Arab Today, arab today low oil price could force 140 north sea oil fields to close

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Merna Waleed praises her work with Soad Hosni

GMT 07:03 2017 Wednesday ,22 March

Merna Waleed praises her work with Soad Hosni
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 07:12 2017 Tuesday ,21 March

Donia Abdel Aziz participates in "Game of Silence"

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 07:38 2017 Friday ,24 March

Pass health bill Friday or he'll move on

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday