Graham Swindells, the CEO of Deltic Energy, has reinforced his company’s desire to invest in the North Sea oil and gas sector, saying that he sees the sector as being capable of recovering from the effects of the COVID-19 pandemic.
North Sea oil is generally thought to be relatively expensive to produce, making the sector highly sensitive to low oil prices. Swindells notes, however, that the industry has been dismissed before but has managed to bounce back thanks to adapting and innovating its practices. He said:
“I certainly believe that through innovation, technology and collaboration our company and the industry as a whole, certainly as the North Sea is concerned, will continue for many decades to come, subject to getting through these difficult times.”
With many energy companies looking to bolster their balance sheets, the company may acquire assets at a discount. Under its previous name of Cluff Natural Resources, the company expanded its North Sea presence during the previous downturn.
When looking at old licences from new angles, the company was able to identify ways that recent technology could be applied to open up new opportunities for production, ones that would not have been feasible two decades ago. Deltic even convinced oil and lubricant producer Shell to get on board, with it agreeing to develop the Selene and Pensacola prospects. Despite the fallout from the coronavirus, the oil major has stressed its commitment to drilling a Pensacola well next year, and another well on Selene the following year.