BAK
JF-Expert Member
- Feb 11, 2007
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(Reuters) - Plunging oil prices have increased the strain on the many small energy firms operating in the North Sea who were already facing diminishing returns from an area that once helped power the British economy.With fields more mature and oil harder to find, heavyweights such as BP (BP.L) and Shell (RDSa.L) turned their attention elsewhere long ago, leaving smaller independent firms to explore the more remote areas.
As many as 133 companies are now active in the British part of the North Sea. However, a third of those companies are deemed by experts to be too small to finance big ticket projects and a fall of around 45 percent in oil prices since June has lessened the sector's appeal to big investors.
As many as 133 companies are now active in the British part of the North Sea. However, a third of those companies are deemed by experts to be too small to finance big ticket projects and a fall of around 45 percent in oil prices since June has lessened the sector's appeal to big investors.