U.K. OIL INDUSTRY SAID NOT PERMANENTLY DAMAGED
The U.K. Offshore oil industry has
suffered from last year's collapse in oil prices but should not
sustain any permament damage, Minister of State for Energy
Alick Buchanan-Smith said.
    The drilling, diving and supply vessels sectors had been
most affected, Buchanan Snith told the House of Commons energy
committee. He noted, however, that oil companies were still
spending six mln stg a day to maintain North Sea production.
    He added that a report by the manpower services committee
which said 14,000 jobs were lost in the industry in 1986 should
be seen in the context of a total workforce of 300,000.
    Prices of North Sea Brent-grade crude dipped to a low of
8.50
dlrs a barrel last July from a peak of over 30 dlrs the
previous November.
    They recovered to around 18 dlrs a barrel after last
December's OPEC meeting and Brent traded today around 17.15
dlrs.
    Buchanan-Smith said the U.K. Has no intention of adopting
OPEC style quotas, noting that Britian is an oil-consuming as
well as an oil-producing nation.
 Reuter
