The UK’s oil industry is in “crisis” as prices drop, a senior industry leader has told the BBC.
Oil companies and service providers are cutting staff and investment to save money.
Robin Allan, chairman of the independent explorers’ association Brindex, told the BBC that the industry was “close to collapse”.
Almost no new projects in the North Sea are profitable with oil below $60 a barrel, he claims.
‘Everyone is retreating’
“It’s almost impossible to make money at these oil prices”, Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. “It’s a huge crisis.”