North Sea industry ‘on brink of collapse’ as oil price plunges

The North Sea oil industry is close to collapse due to the plunging price of crude, executives warned yesterday.

Producers say thousands of jobs are at risk, wages are being cut and fields are becoming uneconomic after the price of Brent crude – the benchmark for oil purchases worldwide – almost halved in six months.

With further falls expected, Robin Allan, chairman of the independent explorers’ association Brindex, said the North Sea industry was being pushed to the brink of collapse…

  • winniec

    The Scots are glad they rejected independence now.

    • Pete_Brewster

      The House of Saud don’t care about the Nats. They’re trying to keep UKIP from shooting up in the polls in England and being in a position to call the bluff of the major parties on immigration and an IN/OUT referendum.

  • It’s called supply and demand. At some level it can’t be ignored. The Europeans, Russians and the ME oil producers all get a first quarter introduction to free market economics.

    I almost feel bad for them.

    You can thank the hard work of the US oil industry.

    • David Murrell

      Indeed. North sea oil has been on the decline for some time now, much as is the case with Newfoundland oil. Plus, it is costly to produce. This being the case, it makes no economic sense for North Sea producers to try to pump the oil — at these low prices it is better for them to shut down. This is basic economics. Nothing surprising here.

      • Exile1981

        They will have to keep up with maintenance on the platforms otherwise they will degrade to nothing fairly quickly and if you need a maintenance crew and their support base you may as well keep producing oil as at least it will offset some costs rather than just being a financial sink hole.

    • Exile1981

      And the Canadian industry as well. Both have made huge leaps in production capacity and reductions in production costs. It’s good for the producers but several nations are going to get burned badly over this.

  • Hard Little Machine

    People in Norway will have to work. Now even they will start rioting.

  • Brett_McS

    This is the Saudis trying to take out the competition. Their main target is fracking in the US, but unfortunately for them the technology just keeps improving and the costs reducing.