Confidence in North Sea at Lowest Point Since 2014, Norway Struggles to Move on With Arctic Projects

Confidence in the oil and gas industry decreased over the last months, after two-thirds of North Sea operators abandoned projects over low oil prices. At the same time, Norway might perform a spectacular U-turn on exploration in the Arctic after the parliament decided not to back the government’s proposal to reassess oil drilling boundaries. 

‘The fall in oil price has been a contributory factor to a fall in confidence and activity levels in the sector. Contractors’ confidence in the UK Continental Shelf (UKCS) is at its lowest point since the survey began in 2004. Only 7 per cent of contractors are more confident about their UKCS activities than they were a year ago, compared to 76% who are less confident’ reads the 22nd Oil and Gas Survey, conducted by Aberdeen & Grampian Chamber of Commerce in partnership with Bond Dickinson.

Meanwhile, Reuters reported that Norway is not finding a consensus on drilling in the Arctic.

"The proposal was not backed and it will now be sent back for a more thorough environmental assessment which will be done before 2020," the leader of parliament's energy and environment committee Ola Elvestuen of the Liberal Party told Reuters. 

In January, Norway reiterated its interest in maintaining high production levels, announcing the results of the Awards in Predefined Areas (APA) 2014 and a revision of the ice edge calculation that could allow companies to explore further inside the Arctic Circle. Simultaneously, Oslo also launched its 23rd licensing round.