The Brexit vote has not shaken up forecasts for North Sea oil and gas production, according to BMI Research, but a successful second bid for Scottish referendum could slash oil by 100,000 barrels a day.
Most commentators believe that Brexit, in isolation, is unlikely to have a material effect on the regulation of the UK’s oil and gas industry, including its UK Continental Shelf (UKCS) activities.
The market hates surprises and Brexit was a huge surprise, but the sell-off was driven by the surprise factor – not fundamentals. There have been and will continue to be immediate and longer-term effects of Brexit on the economies of the world and, derivatively, on the Oil and Gas Industry.
The pace of North Sea oil-field shutdowns is picking up as the impact of the market slump is compounded by the uncertain investment environment created by Brexit.