North Sea Oil Industry Risks Collapse

North Sea Oil Industry Risks CollapseNorth Sea Oil Industry Risks Collapse

The North Sea oil industry is at “serious and urgent risk” of being abandoned, as major energy firms put off projects due to the oil price slump, according to the UK's Oil and Gas Authority. Energy companies operating in the area should join forces to become more efficient and to fundamentally change some of their working practices to sustain the industry, the head of OGA, Andy Samuel, said on Monday, RT reported. Samuel, who is in charge of reviving the sector, warned of a possible “domino effect,” when one company leaves an area of the North Sea and others have to share more of the cost of maintaining infrastructure. The region's oil industry has been hit hard, as crude prices plunged more than 50% since last June. From January to March this year, government revenues plunged 75% to $256 million (£168 million), with more than 5,000 jobs lost in the sector, according to OGA.