Three-quarters of oil firms see $40 as North Sea tipping point
Apr 26, 2016Almost three-quarters of industry participants believe sub-$40-per-barrel oil prices will accelerate decommissioning in UK waters, DecomWorld’s North Sea Late Life Strategy Survey has found.
Related Articles
But two experts who spoke to DecomWorld on the back of the survey said decommissioning could not take off immediately because companies lack the cash to fund such activities.
Tom Leeson, Principal Consultant in Well Abandonment at Reverse Engineering Services, said there will be less decommissioning for at least the next 18 months because of cash shortages, but that “a lot of fields” cannot be sustained long term at prices of less than $50/bbl.