Flaring up again

摘要

The last time oil prices were as high in real terms as they are today-in the dark days of the 1970s-the British had one reason to be cheerful. The discovery of large dollops of oil and gas beneath the North Sea was transforming the country from an importer of energy into an exporter, promising a big economic windfall and a degree of insulation from gyrating oil prices. Today that cushion has gone. British output from the North Sea is well past its prime. Production peaked in 1999 and has declined rapidly ever since, turning Britain once again into a net importer of both oil and natural gas. Making matters worse, the fall in output has coincided with a rolling set of oil shocks that culminated in the latest surge since last autumn.