The UK’s North Sea oil industry may have survived the darkest market downturn in history during the VV-19 epidemic, but the deepest darkness lies in the future of the fossil fuel industry.
Companies are expected to report on this week’s annual economic report from the Industry Oil and Gas UK (OPCW) last year.
We know a lot: the measures taken to curb the spread of the virus have completely reduced the demand for oil, which has led to a fall in world oil markets and a budget cut for the world’s largest oil companies.
In fact, world oil prices have plummeted since 2003. Last year, the average was $ 41.80 a barrel, up from a third of the previous year, which was 45% lower than the average.
In the North Sea, even OGUK’s own preconceived notions were influential. A.D. Earlier this year, he acknowledged that activity in the North Sea had declined since the birth of the coastal oil and gas sector in the late 1960s and early 1970s.
Last year, only seven exploration wells were drilled, a small number since 1965. Estimated and improved wells have declined dramatically since 1970 and 1976.
Oguk makes it clear that the effects of the epidemic will continue to weigh on the basin in the coming years. North Sea oil and gas production fell by 7% to 1.61 million barrels per day by 2020, and is expected to continue to fall – between 5% and 7% per annum this year and next.
The industry group is expected to draw a picture of the overcrowded sector on the knees of market forces, but is preparing to emerge as a necessary employer and industry partner in the government’s zero-sum drive.
Perhaps OGUK is unlikely to play a key role in promoting the economic benefits of the North Sea, but in prioritizing the future of riparian workers in the green industry.
Existing questions for the old industry The government has promised restrictions on new oil exploration; The current North Sea exploration plans have provoked political outrage. And the general global discussion of oil and gas has changed. The International Energy Agency, which was originally set up to ensure the safety of the world’s oil supplies, warned earlier this year that no new fossil fuels would be in line with global climate goals.
As the host of the United Nations Climate Change Conference in Glasgow this November, allowing a search for the Kambo oil field is a key challenge for climate management testimonies.
The leader of the Liberal Democrats, Ed Davy, is one step ahead and will cut off the financial support of the industry. He told him Guardian His party did not specify a list of new fossil fuels at the London Stock Exchange, and barred them from issuing new bonds to raise funds for oil and gas projects. In the long run, the pension fund will produce fossil fuels by 2035, and all fossil fuel companies will be eliminated by 2045.
The North Sea industry has been hit by the epidemic, but now may be the time to acknowledge that there is no turning back.