Energy and natural resources focus
The UK Continental Shelf (UKCS) is a mature oil and gas basin. The collapse in global oil prices from a high of $115 per barrel in June 2014 to a price below $30 a barrel earlier this year has had a severe impact on the basin. Although according to Oil & Gas UK (OGUK) UKCS production actually rose by almost 10% in 2015, revenues fell by 30%.
In addition to paring back new investment, the industry has responded by achieving significant cost reductions. Despite this, OGUK reported in February that at prevailing oil prices over 40% of UKCS oil fields were likely to be operating at a loss in 2016. The fallout is being widely felt with a number of UKCS investors having already become insolvent and many others working hard to restructure their operations and balance sheets in order to remain viable.
