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British oil industry expects significant investment decline

Investments could drop by up to 30 percent in the British oil and gas sector during 2020, industry association predicts, as a result of the coronavirus and a dramatic drop in the oil price. The sector is in a "paper-thin" position, CEO says.

Drilling activity is expected to be markedly lower in the British oil and gas sector this year. Photo: Russell Cheyne/Reuters/Ritzau Scanpix

The pressure from the coronavirus and a price war between Saudi Arabia and Russia now has the British oil and gas sector expecting a significantly lower investment level in the times to come.

In a new report, industry association Oil and Gas UK predicts that capital investments might drop by 20-30 percent in 2020. Additionally, it is not unlikely that operators on the British shelf will have a negative cash flow this year.

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