Brexit & The Oil Industry


According to Stephen Brennock, an oil analyst at PVM Oil Associates Ltd., one area of concern is the prospect of a hard Brexit breathing fresh life into a Scottish bid for independence.

“A Scottish secession would have serious consequences for UK oil assets in the North Sea, particularly on the investment front,” Brennock stated.

“In case of a Scottish secession the bulk of UK oil assets and operations would now fall under the jurisdiction of the newly-independent Scottish nation. It goes without saying that this change would bring much uncertainty and unease to the industry, even if only for the short-term,” Brennock added.

For now, though, it appears to be a case of business as usual for the UK, according to the PVM representative.

Offering Apex Consulting Ltd.’s view on what UK Prime Minister Boris Johnson’s appointment means for the industry, the company’s director, Muktadir Ur Rahman, revealed that Apex does not anticipate any major policy shift in the near-term. Rahman warned that “considerable uncertainties” remain in the medium to long run however.

“Depending on which policy tool his cabinet decides to use, we may end up discovering that the new prime minister’s ambition to become ‘the most pro-business Prime Minister in history’ does not extend to the oil and gas sector in the UK,” Rahman stated.

When asked for its opinion on whether or not Johnson’s appointment would be good for UK oil and gas, trade body Oil & Gas UK (OGUK) told Rigzone it would not be commenting at this stage but revealed that it was “monitoring the situation with interest”.

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