Significant North Sea oil and natural gas reserves were discovered in the 1960s. However, the North Sea did not emerge as a key, non-OPEC oil producing area until the 1980s and 1990s, when major projects began coming onstream. Oil and natural gas extraction in the North Sea's inhospitable climate and great depths requires sophisticated offshore technology. Consequently, the region is a relatively high-cost producer, but its political stability and proximity to major European consumer markets have allowed it to play a major role in world oil and natural gas markets.     
Although the region will continue to be a sizable crude oil producer, output from its largest producers - the UK and Norway - has essentially plateaued and is projected to begin a long term decline. In the near term, improved oil recovery technologies, continued high oil prices and new projects coming online could temporarily delay declines in North Sea crude oil output. Nonetheless, only new discoveries of sizable volumes could reverse the current downward trend of oil production from the North Sea.

In regards to natural gas, the North Sea is also seen as a mature region. Only Norway has seen an increase in natural gas production in recent years, while the UK will likely become a net gas importer in the midterm. Nevertheless, the North Seas importance as a key supplier of natural gas will continue, as natural gas consumption in Europe will increase significantly in the future. Imports from outside sources, such as Africa, the Middle East and Russia, will have to increase in order to compensate for North Sea decline.