U.K. bears brunt of decline in exploration of NW Europe

This paper reports on exploration and appraisal drilling off much of Northwest Europe which is starting to wane as low oil prices and continuing uncertainty about the future trigger substantial cost cutting. Exploration budgets off the U.K. have been hardest hit. Offshore operators have started to defer until 1993 or later formal commitments to exploration campaigns. The exploration surge of the past 2-3 years off the U.K. has kept drilling activity high. However, the number of exploration and appraisal wells there this year could be as low as 120-130, compared with 173 last year and a record 224 in 1990. Well numbers are still tentative because major operators continually adjust drilling plans. Several big companies have made two or three cuts in forecasts since 1992 drilling budgets were established last fall