European industry outlook

Europe's offshore oil and gas industry is estimated to spend around Pound 14bn per year out of a world total of some Pound 43bn, showing that despite its maturity the NWECS remains a dominant segment of the world's offshore business. Especially in the UK sector, expenditure is booming and 1991 is expected to be a record year. This activity level is likely to continue into 1992, but there are factors which could limit activity later in the 1990s, even though it is likely that UK exploration and development will continue into the next century. The oil and gas sector remains a critical element in UK struggle to attain equilibrium in its international trade. From mid-1988, UK oil production was hit by a series of misfortunes which triggered a round of re-thinking and spending on safety matters. This process is still in train, but with the replacement of Piper Alpha and the development of a series of new fields, UK oil production is now set to make some recovery. (author)