Gas discovery made in the North Sea

A gas discovery has been made in the North Sea in one of its most mature regions, by Norwegian oil and gas firm Statoil and its partner Total E&P Norge. This comes on the same day that the UK authorities have granted 41 offshore exploration licences in a round of awards.

Critics have pointed out that the award to drill does not mean that the company’s will actually drill, however the opposing side state that the fact there is huge demand for the licences shows that the UK’s North Sea oil and gas industry are still attractive.

With the price of oil so low, many companies are wary of the high costs to explore the North Sea, and the lack of remaining resources. This is one of the reasons the government will be cutting taxes for the industry, in an attempt to make it more attractive to investment.

The find made by Statoil proves that there are still considerable resources available within the North Sea, after 45 years of exploration within the region. It is expected that as the amount of resources starts to diminish, UK business energy prices will begin to rise as more gas needs to be imported to supply the growing demand.