OIL PRICES: HIGHER MARGINS
Governments could soon chip in to support continued investments in the North Sea, in the attempt to reverse the current gloomy trend both in the United Kingdom and Norway. These investments could then translate into higher margins for major players, while smaller companies might be the last to reap the benefits of increasing public support.
At the same time, current market conditions might turn out to be positive for the industry in the long run also for another reason. Low prices are expected to bring along helpful rationalisation measures, which will have a positive impact on the bottom line.
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