North Sea oil costs hit record

NorTH Sea oil and gas producers have slashed costs by around 48pc as they struggle to survive amid slumping oil prices.

Producers are operating at around £11.80 per barrel, levels not seen since around 2011 when there were greater economies of scale. Trade body oil and gas UK expects cost to fall further this year, to around £11.20. oil’s drop from $115 a barrel in June 2014 to around $50, amid global oversupply, has hammered the industry and forced many out of business.

oil and gas UK said yesterday its membership, which includes majors Shell and BP, fell by about 17pc during 2016 due to the ‘difficult business environment’.

The group added: ‘2016 has been another challenging year.’