Business energy firms 'face difficulties' drilling for oil and gas - 24/02/2010
A number of business energy companies face difficulties drilling for North Sea oil and gas, a new survey reveals.
Industry trade body Oil & Gas UK conducted a survey of 70 companies and found that many have problems raising finance for drilling projects even though there are more developments under consideration now compared to the same time last year.
The report suggests that the problems facing companies could lead to a drop in the UK's domestic oil production and increase the need for imports, which could compromise the prices of cheap energy.
Mike Tholen, Oil & Gas UK's economics director and author of the report, said the investment climate is sub par although confidence has generally improved.
"Even that is not proving enough," he said, "illustrated by the production decline and falling investment seen over recent years."Things are made no easier by the fall in wholesale gas prices."
Oil & Gas UK has called for further investment in order to allow North Sea oil and gas reserves to last for another ten years.
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