Additionally, shareholder returns, some of which have yet to
recover from Covid crisis cuts, may prove more pressing, especially in the face
of shareholder activism. And we expect some investment focus to shift away from
the UK, threatening the progress of the UK’s long-term energy security
The UK North Sea can remain an attractive investment opportunity,
particularly for independents. The recent Ithaca IPO (the 5th largest European
IPO of 2022) also suggests renewed public market appetite. This trend is likely
to continue, especially while oil remains at levels around $90/bbl, although
the appeal for “holding” assets remains while exceptional prices prevail.
Increased demand for energy transition metals such as lithium,
copper, nickel, and cobalt will drive mining deals. At the same time, despite
macroeconomic pressures, 2022’s high-price environment for these commodities will
likely persist into next year.