UK set to pioneer decommissioning globally as low oil price takes toll

EDINBURGH, Scotland -- The UK oil and gas industry is set to become a pioneer in decommissioning activity globally and has the opportunity to become a leader in this field, according to Wood Mackenzie.

"Although decommissioning in the North Sea has been an impending reality for some time, the high oil price between 2011 and 2014 allowed some mature, high-cost fields to keep producing economically,” Ian Thom, senior research manager, UK Upstream Research, Wood Mackenzie, said. “The lower for longer oil price environment compounded by the maturity of the basin means that continuing production of certain fields in the North Sea region is no longer viable. We expect companies will not be able to keep producing UK fields at a loss, and decommissioning activity will ramp up as a result."

http://www.worldoil.com/news/2016/5/25/uk-set-to-pioneer-decommissioning-globally-as-low-oil-price-takes-toll