23 February 2016 (07:34 UTC-07 Tango 01) 04 Esfand 1394/14 Jumada al-Ula 1437/16 Geng Yin 4714

“It is easy for consumers to be lulled into complacency by ample stocks and low prices today, but they should heed the writing on the wall: the historic investment cuts we are seeing raise the odds of unpleasant oil-security surprises in the not too distant future.”-Fatih Birol, International Energy Agency

A British oil industry group says not only are they dealing with low oil commodity prices, but investors are getting out fast.

The result could be that 43% of oil companies in the North Sea will cease to exist.   However, it should be noted that the Oil & Gas UK 2016 Activity Survey is making that claim to justify a permanent tax cut, even the elimination of the petroleum tax, for British oil companies!

Oil & Gas UK also clams that British oil companies cannot survive while their Brent Crude fetches only $30 per barrel.  In 2015, an estimated 65-thousands Britons lost their oil industry related jobs!

Recently several oil producing countries, including Russia and Kingdom of Saudi Arabia, agreed to hold oil production at January levels.  I’ve written how Iranian oil ministers boasted that their oil industry can make a profit even if oil hits $10 per barrel.