Can the North Sea Still Save Europe?

Abstract

In the 1980s and 1990s the North Sea emerged as a key non-Organization of the Petroleum Exporting Countries oil-producing province. Yet today overall production is declining, in both the British and Norwegian sectors, and the big oil companies and investors are losing interest in what they now see as a mature province. But apparent maturity is not a bar to new prospects and new possibilities. This paper analyses not merely the still significant potential of the North Sea, but also the wider and increasingly attractive prospects offered by the opening up of the High North, the Barents Sea and part of the Arctic region-all areas of rapidly growing interest that are on Europe's doorstep. Success will depend heavily on key questions such as the world oil price trend, technological advance and the structure of fiscal regimes for oil and gas extraction. But the opportunities are there and they could be to Europe's great advantage. Copyright 2008 The Author. Journal compilation 2008 Organization of the Petroleum Exporting Countries.