Investment in North Sea projects "will be diminished" even as oil prices recover, according to the boss of one of the world's biggest oil majors.
Patrick Pouyanné, the chief executive of Total, said the days of quick and handsome returns from mature fields such as the North Sea were being cut short by the recent collapse in the oil price, which has led many firms to reduce investment in the region.
He added that tax sweeteners from the UK government might not be enough to revive the industry, as oil majors faced lower returns in the "fight against the decline of mature fields".
"I think it's in the interest of the country to develop its taxation system if it wants to encourage investment, but the allocation of capital expenditure for these types of mature fields will be diminished for sure, so we have to see what will be the answer," he said.
Chancellor George Osborne has pledged to "take steps in the Budget" in March to try to further relieve pressure on the industry, following a move in December's Autumn Statement to cut the supplementary charge on producer profits from to 30pc from 32pc.
Speaking at the World Economic Forum in Davos, Switzerland, Mr Pouyanné also warned against an "overreaction" to the drop in the oil price, which haves fallen to below $50 a barrel from $15 last June.
While Mr Pouyanné said prices were unlikely to bounce back in the first half of this year, he said the fall was due to cyclical factors, and that crude prices would eventually rise.
"Five months ago nobody was saying that the price would be $50 a barrel. What I am sure about is in Total we are a large company so we have to adapt and not overreact.
"In 2009 [the fall in oil prices] lasted six months, in 1986 it lasted 10 years. But this is the basics of the oil and gas industry...For the medium to long term we need more energy, we need more oil. The cycle will come back, and the price will come back higher again."
Claudio Descalzi, chief executive of Italian oil group Eni, has said oil could jump to $200 a barrel if Opec fails to cut supplies. Cutting capital spending by up to 13pc this year would create longer-term shortages and sharp price rises in four to five years' time, he added.
Mr Pouyanné said that while Total had reduced capital investment because of the decline, he believed that fossil fuels would still account for 70pc of the world's demand for energy in 2055.
However, others on the Davos panel said there were signs that advances in renewable energy were no longer being dictated by the price of oil.
Ulrich Spiesshofer, chief executive of automation technology company ABB, said a "smart co-existence" would emerging between the oil majors and their renewable rivals, as consumer habits changed and renewable energy became cheaper.
"There won't be a revolution, but we will have a stronger perseverance [of renewable sources of energy] and a higher speed of development ... because the cost of renewable energy has gone down massively," he said.
"There needs to be a new model of coexistence."