Spending on UK upstream projects could drop by half

The North Sea's future is in the balance after falling oil prices and rising costs have threatened funding

Pummelled by falling oil prices and rising costs, while fighting to keep ageing infrastructure functioning, producers in the increasingly mature and marginal fields of the UK sector of the North Sea are crying out for government assistance in the form of reduced taxes. While UK chancellor George Osborne has indicated help may be forthcoming, it is uncertain what fiscal measures he has in mind and whether they can rescue the sector. The immediate prospects for the UK North Sea look bleak. Energy consultancy Wood Mackenzie has estimated around $3.2 billion of spending associated with projects still at the pre-sanction stage could in jeopardy over the next two years because of low prices.  If t