Wood Mackenzie senior research analyst for UK upstream Erin Moffat warned that the recent dramatic falls in oil prices would only intensify existing concerns about the basin’s high-cost environment.
“At an oil price of $60 a barrel, 95% of pre-sanction oil & gas reserves in the UK generate less than a 15% return on investment,” Moffat said, warning “further cuts or delays to projects are likely”.
“We
