• 2 minutes CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 7 minutes Sources confirm Trump to sign two new Executive orders.
  • 3 hours In a Nutshell...
  • 1 day No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 21 hours Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 2 days The Coal Industry May Never Recover From The Pandemic
  • 2 days A Real Reality Check on "Green Hydrogen"
  • 3 hours Is the oil & gas industry on the way out?
  • 3 days Why Oil could hit $100
  • 1 day Where is Alberta, Canada headed?
  • 1 day Putin Paid Militants to Kill US Troops
  • 3 days Why Wind is pitiful for most regions on earth
  • 2 days During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?

The Price War Could Kill The UK's Oil Industry

The UK’s oil and gas industry has called on the government to help the sector as it faces three separate challenges, that could see production plummet.

Oil and Gas UK (OGUK) highlighted coronavirus, gas prices being halved and the sinking oil price as threats to the industry.

Boss Deirdre Michie highlighted the need for key skills in the sector to be maintained in the face of uncertainty and requested urgent meetings with ministers to establish a response to coronavirus.

“The offshore oil and gas sector is part of the UK’s critical infrastructure, providing the secure and affordable energy the country needs and is a key contributor to the economy in terms of supporting hundreds of thousands of skilled jobs, businesses and our wider economic contribution,” she said. 

In its new business outlook report, OGUK warned production could fall to the lowest level since 2016.

That’s a third below previous forecasts and could give firms negative cash flow this year.

There could also be a 20-30 percent reduction in capital expenditure across the industry this year.

OGUK said supporting the sector is key to the UK’s future energy supply.

Michie also warned the industry’s supply chain is particularly exposed.

A volatile picture

Natural gas prices have halved in the past year and the oil price is at a 30 year low.

It is currently trading at around $30 a barrel.

This has been caused by the coronavirus and the price war between Saudi Arabia and Russia.

The pandemic has led to wide-ranging travel bans including from the EU to the US.

Several major airlines have either cancelled flights or ran them far below capacity.

This has been at the same time as the oil price war between Russia and Saudi Arabia.

At a meeting earlier this month, OPEC and Russia, known as OPEC+, could not agree with an oil supply strategy.

Related: Is $10 Oil On The Horizon?

Saudi Arabia and its allies including the UAE have dramatically increased oil supply.

“At this time innovative thinking, partnerships and meaningful collaboration will be required to help as many as possible to weather the storm,” said Ross Dornan, OGUK market intelligence manager.

Analysts have suggested this could lead to the price of oil reaching as low as $20 a barrel.

This is because the Saudi strategy is likely to continue for some time.

By CityAM

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • bollos demayer on March 20 2020 said:
    good news. build more wind farms and solar farms and shut down this poison.
  • bollos demayer on March 20 2020 said:
    good news.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News