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© Bloomberg Oil rigs laid up in the Cromarty Firth The Brent oil price has reached its highest in more than 12 months, but experts say questions persist on whether activity in the UK North Sea will see a similar resurgence. The global benchmark hit nearly $60 last week, its highest since January 2020, with Covid vaccinations and production cuts from OPEC buoying the market. Experts, like petroleum economist Alex Kemp of Aberdeen University, are showing some cautious optimism for the UK sector, hopeful “a few investment projects may be given the go ahead” if the price rally is sustained. “Cash flows are increased to the industry, it will mean tax revenues are a bit higher and also it will mean that some investment projects which have been put on hold will now be possibly reappraised”, he said. However, “a lot of ifs and buts” remain on the future, not least due to the “fragile” nature of OPEC agreements, but the capital budget constraints of North Sea operators, despite the rise of Brent. One point that may preclude activity is the rise of the ESG agenda, now “at the heart of policy” in the UK energy sector, and whether […]
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