REUTERS: UK’s oil capital Aberdeen reels from global price slump

oil 50 barrelA steep fall in crude oil prices since summer 2014 has seen the price of benchmark North Sea Brent crude dive from more than $110-barrel to Friday’s close of around $44 per barrel.

While causing a serious adverse shock to the economy of Aberdeen – the EU oil capital – the silver lining in the macro-economic cloud for the UK is that, according to the RAC, there is ‘a very good chance’ that retail petrol prices could fall to £1-litre, or even lower.

According to RAC figures, the last time petrol fell below £1-litre (around £4.50 per gallon) was in the summer of 2009.

Around 65,000 jobs in the UK oil and gas industry supply chain have been lost in the past 15 months as the crude price has collapsed – rendering large swathes of the 25 billion barrels of identified North Sea reserves – below economic recovery.

The following article was published recently by Reuters – a global news agency.

In order to maximise economic recovery from the North Sea, the UK government will compel oil exploration companies to collaborate both with each other, the new OGA regulator and their supply chains to cut costs to boost maximum economic recovery (MER).

See also Scottish Energy News (19 Nov 2015)

MER Collaboration to become a legal requirement for N. Sea industry in new Energy Act


Getting MER from the UK North Sea: The 2016 Oil & Gas Collaboration Conference, Aberdeen



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