A broad study predicts that the offshore petroleum industry in Scotland will boom for 30 years if rates are close to current levels.
Researchers at the University of Aberdeen predict that an estimated 14.5 billion barrels of diluted Brent crude-oil at its 2018 level will be pumped out of the North Sea by 2050.
Nevertheless, they also claim that if prices averaged just $50 per barrel, production could drop to below nine billion barrels.
Oil is priced at $65 at the moment. Professor Alex Kemp, a veteran watcher on the North Sea, and Linda Stephen’s research show that UK production is extremely prone–instead of fighting the climate crisis.
Experts want drastic reductions in global fossil fuel consumption, and Scotland wants to achieve zero net emissions by 2045. By 2045.
The predicted boom comes after Scotland was said to be “bold” to reach its own carbon emissions reduction goals by the Climate Change Committee.
Nevertheless, there are also intense political and economic challenges with Brexit and a second independence referendum on the horizon to drive maximum income from the sectors.
The investment would also rely on costs, Mr. Kemp and his team said. We had three crude, 50, 60 and 70 dollars/barrel examples. They said: “The cost of development and operating costs is also highly susceptible to the actions of oil and gas prices. The total expenditure on growth over the period 2019-2050, therefore, at 50 dollars, is £ 51.6 billion and at 70 dollars, at 113 billion dollars.
Eco-friendly people want to keep the oil in the sea.
Get to 70 dollars and it’s worth 238 of them in the industry. Nevertheless, reserves of up to 70 dollars per barrel would be too hard to economically exploit in the North Sea.