International Politics

High oil prices and the North Sea. High prices have had a considerable impact on North Sea oil and gas activities, with investment picking up noticeably. Other sources of encouragement are new discoveries and a reappraisal of prospectivity in Norwegian and UK waters. Exploration activity is rising, but it is hampered by a rig shortage. In any case, high oil prices, together with enhanced knowledge of the geology; progress in management, organization and technology; and a stable regulatory environment, give new life to an oil province hitherto considered mature and in decline. In Norway’s 19th Licensing Round, in late March 2006, 17 companies were offered participation in 13 new production licenses. The smaller and medium-sized oil companies that have risen with geological maturity in the US Gulf of Mexico, and in UK waters, are now active in Norway.