North Sea upstream: 2022 in review

2022 was a record-breaking year for the North Sea. Sky-high prices led to exceptional cashflow levels, prompting governments to swoop on windfall profits and companies to capitalise on tax incentives for approving new developments. Amid a backdrop of energy insecurity for Europe, caused by Russia's invasion of Ukraine, Norway stepped up as a reliable gas provider and boosted output from 2021 levels. The country also approved a record number of developments to ensure production is maintained into the late 2020s. But it wasn't all plain sailing. There was a slump in both activity and value traded in the upstream M&A market, as price and fiscal volatility dented investor confidence. Capital expenditure hit the lowest level since the early 2000s and exploration also largely underperformed. We look back at the highlights of 2022 across the UK, Norway and Denmark, including M&A, investment, FIDs, energy transition, exploration, and production.