for North Sea
Because of lower spending levels, oil companies have injected more resources into existing oil fields, rather than greenfield projects, particularly ones with long lead times.
The North Sea is seeing a revival, thanks to lower production costs, new investment, a slight uptick in output, and newfound optimism. But it's unclear if the region's reversal of fortunes will last.
Production in UK waters has struggled to compete against cheap oil in the Middle East, lower risk and short-cycle U.S. shale, and even expensive offshore oil fields in relatively less explored places like South America, West Africa or the Eastern Mediterranean.
For Britain’s oil sector, the possibility of a “Brexit” has not raised alarm bells as of yet, but there could be higher costs for the industry if Britain breaks up with Europe.
Intercontinental Exchange's Brent and Gasoil futures have retained their roles as the world’s crude and refined oil benchmarks because they have evolved in line with the physical markets over the course of the last three decades.
Low oil prices have accelerated the decline of North Sea crude oil production. As companies decommission their fields, those that remain are shouldered with increasing costs and pressure to exit.
Norway, which produces just under 2 million barrels per day (mbd), is not experiencing the social and political turmoil seen in Iraq, Venezuela or Russia, but it is still taking major hits from the precipitous drop in prices as a result of oil’s integral role in the country’s economy.