The oil and gas sector is wrestling with the dual shock of COVID-19 and substantial falls in the oil price, some of which predated the crisis. What are the implications for the industry - and for exploration and development activity in the UK continental shelf (UKCS)? Two recent studies of prospective long-term activity in the UKCS co-authored by Alex Kemp, Professor of Petroleum Economics and director of the Aberdeen Centre for Research in Energy Economics and Finance (ACREEF) provide significant insights on these questions.
The first of the two studies is titled ‘Prospects for Activity in the UK Continental Shelf: the Late 2019 Perspective’ and is freely available to download on the ACREEF website. This study indicates the perspective as seen in 2019. The second of the two studies is titled ‘Prospects for Activity in the UKCS after the Oil Price Collapse’ and is also freely available to download on the ACREEF website. This study gives the perspective in late April 2020. Both studies present financial simulations to assess the various risks related to future exploration activity, and to field production profiles and development costs for the many undeveloped discoveries as well as any future fields in the UKCS.
In an invited piece titled ‘How will coronavirus affect the UK’s oil and gas industry?’ which was published by Corona-Virus-And-The-Economy, Professor Kemp shares deep insights into how the COVID-19 pandemic will affect the UK’s oil and gas industry, including wider policy implications for the energy landscape.