Originally Posted by TeePee
No it isn't. Firstly, the rigs out there are merily drilling away, and getting a return, production isn't decreasing. The fields aren't divided neatly into cheap fields and expensive fields, only fields which show a reasonable return and so are worth investing money in for a quick return at the current price point, and those which aren't economical at the moment. As prices go up, the return on investment makes more fields attractive. It's possible none of the fields in the North Sea are economical to invest and expand into at the moment, and so production isn't increasing. Production will only decrease when the cost of running the existing rig is higher then the return.
This is fairly basic economics...