Britain to identify North Sea production risks in light of oil prices
Britain plans to conduct a study to identify the key risks to oil and gas production in response to current price trends, according to a Reuters report.
TheUK North Sea oil and gas sector employs more than 400,000 people and has generated in excess of $200 billion in tax revenue.
But there are growing pressures on the sector afteroil prices slumped almost 60% percent over the past month, leading to job cuts at BP, ConocoPhillips, and other majors.
Plans are for Andy Samuel, the head of Britain’s Oil and Gas Authority to lead the review and would present his findings to the government by the end of February.
“Given the huge value of the UKCS to the nation and the relatively high cost base that it has, I am concerned to make sure that it does so in the best possible shape for the future,” said Energy Secretary Edward Davey in the Reuters report.