The drastic fall in oil prices has made petroleum explorations in the Barents Sea seemingly unprofitable. Yet, despite severe economic, technological and environmental concerns, the Norwegian government pushes for increased activities, and recently handed out exploration licenses in the Barents Sea.
The huge fall in global oil prices since June from $115 to around $50 has dramatically lowered cost-margins in the volatile petroleum industry. After 5 years of stable high prices, the recent fall in oil prices is attributed to several reasons: sluggish economic output, the shale gas revolution in the US, a switch to alternative fuels, and finally the unwillingness of OPEC and the Saudis to sacrifice their market share by cutting productions.
