Fast and lean: How North Sea oil is learning from American shale
LONDON (Bloomberg) The U.S. oil boom changed the petroleum industry forever. Now its philosophy is being adopted by conventional producers in the North Sea.Motivated by lower crude prices and higher volatility, many companies are favoring smaller and nimbler investments known as “short-cycle projects.” That term first coined in American shale fields is now being applied in Europe’s oil heartland as investors demand quick and efficient returns, short development times and low production costs.“During the downturn people had less certainty on the long-term oil price,” said Chris Boulter, UK business development manager for Neptune Energy. “Because we haven’t gone through two years of $90/bbl, people haven’t felt confident enough to invest i.....