Brexit Likely to Deepen North Sea Oil Investment Drought: Chartby
The U.K.’s decision to leave the European Union is likely to deepen an investment drought in North Sea oil and gas. While the collapse in sterling after the referendum may help the industry by reducing some fixed costs paid in pounds such as salaries, it also wiped 6 percent off oil prices. If investment continues on its current trajectory -- a 79 percent decline by 2020 according to Wood Mackenzie Ltd. -- North Sea production will start to decline toward the end of this decade and the U.K. government may be too distracted to offer any help.
In Pictures: Where to Park Your Unloved Rig
For over 40 years, the Cromarty Firth in Scotland has been at the heart of the U.K.’s oil and gas industry.