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Showing posts with the label NORTH SEA OIL

No Longer the North Sea bonanza

North Sea oil was central to the dream of Scottish independence in this year’s referendum. The wealth stored under the waves would buttress public spending, said the SNP, and it would also enable Scots to set up their sovereign fund as Norway has to hold some of its fruits for future generations.
The SNP predicted that oil would be selling now for $110 a barrel. Unusually, however, it forecasted that the price would stay constant over the next five years. Yesterday, North Sea Brent crude traded at one point at $64.24 (and could drop further). The world is now facing an era of cheap oil so the SNP is joining a long queue of people who got their predictions about oil wrong.
 Between 1991 and 2008, tax receipts from the North Sea grew strongly, reaching £12.4 billion, on the back of prices reaching an all-time high in 2008. From 2009, however, revenues have fallen, from £6.1 billion in 2012-13 to £4.7 billion in the last financial year and to £2.8 billion in the one ending next April. T…

North Sea Spills its secrets

Oil companies operating in the North Sea have been fined for oil spills on just seven occasions since 2000, even though 4,123 separate spills were recorded over the same period, the UK Department of Energy and Climate Change (Decc) has confirmed. In total, 1,226 tonnes of oil were spilt into the North Sea between 2000 and 2011. (A tonne of crude oil is broadly equivalent to seven barrels, or, more precisely, 1,136 liters)

Total fines resulting from prosecutions between 2000 and 2011 came to just £74,000 and no single oil company had to pay more than £20,000. Two companies received fines of £20,000: BP, for causing 28 tones of diesel to spill into the sea in 2002 from the Forties Alpha platform, and, a year later, Total E&P, for causing six tones of diesel to enter the sea during a transfer between fuel tanks on the Alwyn North platform. The smallest fines over this period were those imposed on two companies, Venture North Sea Oil and Knutsen OAS Shipping, of £2,000 each, after 20 …

It's Scotland's Oil

Umm...not quite..

 China may soon get control of a large slice of UK North Sea oil supply, which is key to determining global oil prices, if bids by its state firms for assets of Canadian oil companies Nexen and Talisman are cleared by the regulators.

 The Chinese state-controlled energy giant CNOOC last Monday unveiled a $15.1bn (£9.7bn) bid for Canada’s Nexen, the second biggest oil producer in the North Sea. If successful, the takeover will be China’s largest ever foreign investment. If approved, the Chinese would take control of the UK's largest producing oil field - Buzzard - and the Golden Eagle development, which includes both the Golden Eagle and Peregrine reservoirs in the North Sea, about 43 miles off Aberdeen.

Oil from Buzzard, although only 0.2 percent of global supply, plays a crucial role in setting prices because it is the largest contributor to the Forties oil blend, one of four North Sea crude streams making up the Brent oil benchmark. Forties usually sets the va…

PLAYING RISK WITH THE WORLD

It all began like a good disaster film. The gas alarm sounded and the emergency evacuation started. Only a small contingent stayed behind, labouring to plug the leak. Having failed to do so after hours of trying, they turned off all the machinery and electricity and fled the platform too. When the last helicopter lifted off, it left the drilling rig alone on a swelling cloud of highly flammable gas from the deep. For almost an entire week flickering way up at the tip of the 490-foot stack was an open gas flare. a company spokesman thankfully noted, the wind had been blowing the gas vapors away from the platform. If it hadn't, and the cloud of gas had come into contact with the flame, there could have been a massive explosion threatening to trigger an environmental catastrophe. Total, the French energy company that owns Elgin, the stricken platform, had lost complete control. Nor was this accident without warning. Weeks earlier, engineers working on the Elgin had noted troubling p…