North Sea upstream: 2020 in review

The coronavirus pandemic and oil price crash of 2020 hit the North Sea hard. Deal flow slumped and value traded fell to a 17-year low, sanctioned spend was at its lowest in decades and exploration drilling halved. But the headline numbers do not tell the full story. There were positives too. North Sea cash flow remained in the black, as fiscal incentives and strong capital discipline took effect. Exploration performance continued its recent renaissance as volume discovered per well reached a ten-year high. And the North Sea remained one of the most active M&A markets outside of North America. The energy transition also picked up the pace. Government climate policies kept carbon emissions high on the agenda, and companies demonstrated their commitment to energy-transition focused upstream investment, as projects continued to be sanctioned.