The industry association OGUK said last Thursday (19), that the British oil sector will need help from the government to survive. This is all due to the drop in oil prices caused by the coronavirus pandemic and the price war between Saudi Arabia and Russia, which threaten its ability to continue producing in the North Sea.
EnQuest became the first British producer to close fields in the North Sea after the oil price dropped to 17-year lows, saying it will not restart its Heather and Thistle/Deveron fields. As a measure, the UK has already said it will launch a lifeline of loan guarantees of 330 billion pounds ($399 billion) and provide an additional £20 billion in tax cuts, subsidies and other aid for companies facing the risk of Collapse.
“In the long run, we are also seeking more government support in terms of a sector agreement,” said OGUK market intelligence manager Ross Dornan, who said it is still unclear how the oil industry will access government resources.