As the bigger producers sell off some of their assets in the North Sea oil basin, smaller, more efficient companies often using newer technologies are exploiting the gaps.
Described as a ‘North Sea minnow’, Serica Energy is a good example, finding areas where oil can still be extracted profitably. This year they made $10.3 million after their Erskine Field produced 2 800 barrels per day.
The company plans to use its profits to make further acquisitions in the North Sea and further increase its output.
I’ve already reported on the profitability in current oil prices. See:
Also, the gloomy prospects predicted by one academic have been thoroughly dismissed. See:
An Edinburgh University Professor says North Sea oil and gas has only ten years left while the Wall Street Journal describes it as an ‘oil hot spot’ and Oil and Gas UK doesn’t recognise his figures. Who’s right?