Gloom overshadows North Sea exploration hits

Two pieces of good news in the UK and Norway are buried by cost-cutting and depressed prices

The renaissance of the North Sea since the 2014 oil price crash has largely been a technical, economic and corporate triumph. How it survives the twin challenges of another bout of unconstrained supply coupled with a demand-side hit unprecedented outside of wartime remains to be seen.  Already, North Sea operators are announcing capex and opex cuts they admit will impact production. The optimistic view is that the post-2014 bloodletting has left a province well prepared to weather a sustained downturn. The less-rosy view is that a province that has taken out so much of its fat will be cutting painfully into muscle—with good projects and efficient supply chains jettisoned.  One cloud on the p