• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 8 hours U.S. Presidential Elections Status - Electoral Votes
  • 2 days Australia sues Neoen for lack of power from its Tesla battery
  • 19 hours Evergrande is going Belly Up.
  • 1 day Europeans and Americans are beginning to see the results of depending on renewables.
  • 14 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 7 hours Oil Price: does the security vacuum in the Middle East spook investors?
  • 6 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 1 day Ozone layer destruction driving global warming
  • 4 days Forecasts for Natural Gas
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

UK North Sea Investment Crashes To 50-Year Low

Due to the pandemic-driven collapse in oil prices, capital investment in the UK North Sea plunged by one-third in 2020 to the lowest level since 1973, offshore industry body OGUK said in its Economic Report 2021 published on Wednesday.

As a result of COVID, reduced global oil demand, reduced capital budgets, and lower project timeline visibility, capital investment in the UK Continental Shelf fell to just US$5 billion (£3.7 billion) last year, compared to US$7.6 billion (£5.5 billion) in 2019, OGUK said.

The one-third annual decline in investment was steeper than the fall in capex globally, which Rystad Energy estimates to have dropped by 27 percent in 2020.

The fall in UKCS investments was also greater than the overall UK business investment, which fell by 17 percent compared to pre-COVID times, OGUK said. 

As much as US$29 billion (£21 billion) could be invested in the UK North Sea between 2021 and 2025, but less than one-third of this sum has been fully committed by producers so far.

“In a no-further-investment case, total capital could fall to less than £1 billion per year by the middle of the decade,” OGUK’s report noted.

Low investment levels would raise UK’s reliance on imports, damaging the economy and reducing energy security, the association said.

OGUK insists that investment in the UK North Sea is essential not only for energy security reasons but also because it would ensure a managed energy transition as it would keep a highly skilled energy workforce.

“The UK faces a stark energy choice: Invest in its offshore industry to build energy security, jobs, and a managed green transition – or rely on other countries for its energy needs,” OGUK said.

At the same time, activists push the UK government not to approve new oil developments in the North Sea. Greenpeace UK sued the government on Wednesday for granting a new drilling license in the North Sea.

“BP’s Vorlich oil field and the Cambo oil field cannot go ahead when we are at code red for humanity,” Greenpeace said, adding that “More oil fields = more climate destruction.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News