Category:

North Sea oil at ‘serious risk’ of shutdown

There is a “serious and urgent risk” that parts of the North Sea oil industry will be abandoned unless energy companies join forces to become more efficient, the man in charge of reviving the sector has warned. Andy Samuel, the head of the new Oil and Gas Authority, told the Financial Times that companies need to fundamentally change some of their working practices if they are to keep parts of the lifeline of the Scottish economy alive. Companies have been struggling for the past 14 months with a low oil price, which has plunged more than 50 per cent since last June and now sits around $50 a barrel. In response, the government has offered companies a range of new tax breaks, but has also urged the industry to work together, appointing Mr Samuel to oversee that process . He warned that there could be a “domino effect”, where […]

Posted On : Published By : Tom Whipple
Category:

Shell Cheapest in 6 Years for Buyers Braving Takeover Doubts

Royal Dutch Shell Plc It’s the cheapest opportunity in six years to be a shareholder in Europe’s largest oil and gas company. BG Group Plc, the oil and gas producer Royal Dutch Shell Plc agreed to buy for about $70 billion, is trading at a price equivalent to paying just over 14 pounds ($21.53) for a Shell B share, according to data compiled by Bloomberg. That would be the lowest valuation for Shell since the global recession of 2009 and a discount of 13 percent to the company’s current share price. Investing in BG “would be the cheapest way into Shell, if you’re taking the view that the deal is going to go through,” said Philip Lawlor, a strategist at Smith & Williamson Investment Management LLP in London, which oversees about $24 billion of investments including in Shell and BG. The outlook for the oil market has deteriorated since […]

Posted On : Published By : Tom Whipple
Category:

Shell acquisition of BG cleared by Europe

European Commission clears Shell acquisition of British counterpart BG Group. Photo by Christian Lagerek BRUSSELS, Sept. 2 (UPI) — Royal Dutch Shell and BG Group announced their planned merger received unconditional approval Wednesday from the European Commission. The board of directors at Shell and BG Group issued a joint statement in April saying they’ve reached an agreement for the Dutch acquisition of its rival. The deal, valued at around $70 billion, is among the largest acquisitions since the Exxon Mobil merger was completed in 1999. It also comes at a time when most energy companies are streamlining capital expenses in a weak oil market. Both companies issued statements Wednesday saying the merger was approved by the European Commission, which found the combined corporate market share would be limited in terms of exploration and production despite the acquisition. When the deal was announced Helge Lund , chairman of BG Group, […]

Posted On : Published By : Tom Whipple
Category:

Maersk Gets Approval for $4.5 Billion U.K. North Sea Gas Field

A.P. Moeller-Maersk A/S won U.K. approval for a $4.5 billion development plan for the Culzean natural gas field as the Danish company tries to ramp up output at its energy division. The field, located in the central part of the British area of the North Sea, is expected to produce enough natural gas to meet 5 percent of the U.K.’s total demand in 2020 or 2021, Maersk said in a statement on Monday. Maersk Oil will be the operator of the field with a 49.99 percent stake, while JX Nippon Oil & Energy Corp. has 34.01 percent and BP Plc 16 percent. Nils Smedegaard Andersen, chief executive officer of the Maersk group, said earlier this month the company is actively searching for North Sea oil acquisitions as the drop in energy prices makes takeovers attractive. The company wants to return focus to its North Sea waters, where it first […]

Posted On : Published By : Tom Whipple
Category:

British shale oil sector gaining momentum

British energy industry reviews what’s thought to be a significant deposit of oil in shale beds in the country. Photo by David Gaylor/Shutterstock LONDON, Aug. 26 (UPI) — At least 10 billion barrels of potential oil in place is thought to lie in the Horse Hill shale license area in the south of the country, a British group said. U.K. Oil and Gas Ltd. said an independent assessment from oil services company Schlumberger found a mean 10.9 billion barrels of oil in pace in a 55 square-mile area of the Horse Hill basin . U.K. Oil and Gas Chairman Stephen Sanderson said the independent analysis predicts "significant" oil volumes and gives further support for development plans. The company early this year said the reserves at Horse Hill are in shale beds that are fractured naturally, meaning extraction may be carried out using conventional techniques. The discovery at Horse Hill […]

Posted On : Published By : Tom Whipple
Category:

British shale company nabs more acreage

British shale company Cuadrilla Resources awarded new acreage for fledgling campaign in the country. Photo by photostock77/Shutterstock LONDON, Aug. 19 (UPI) — British shale natural gas pioneer Cuadrilla Resources said it was awarded two new licenses to explore the reserve potential in Yorkshire. Cuadrilla secured licenses to explore around 750 square miles of combined land in Yorkshire . During the next year, the company said most of the activity would consist of "desktop studies" that will give the company a better idea of the geology and reserve potential. "While we continue to progress our shale gas exploration work in Lancashire, we welcome the potential for exploration in Yorkshire along with the associated benefits of new jobs and economic growth we believe it will bring," Cuadrilla Chief Executive Officer Francis Egan said in a statement. The British Geological Survey started a baseline environmental survey in Yorkshire last week. Third Energy […]

Posted On : Published By : Tom Whipple
Category:

London opening oil and gas doors

British government reviewing potential onshore leases in an effort to accelerate shale oil and gas development. Photo by David Gaylor/Shutterstock LONDON, Aug. 18 (UPI) — With a potential for growth in the fledgling shale sector, the British government said Tuesday it was expecting bidders for new onshore oil and gas acreage. "As part of our long-term plan to build a more resilient economy, create jobs and deliver secure energy supplies, we continue to back our onshore oil and gas industry and the safe development of shale gas in the U.K.," British Energy Minister Nick Bourne said in a statement. More than 100 sites could be available after review of environmental consultation laws. The industry’s regulator, Oil and Gas Authority, said around two dozen of those were formally on the auction block already. The government cautioned that no licenses were issued. Instead, the companies behind the 27 sites released will […]

Posted On : Published By : Tom Whipple
Category:

BP fights to blow away gas market rigging case

Sign up for quick access to a wealth of global business news, including: BP fights to blow away gas market rigging case Newspaper + Premium online Newspaper + Premium online Premium Full FT.com subscription Premium Full FT.com subscription Standard Full news & archive Standard Full news & archive Trial Try Premium online Trial Try Premium online Price Monthly Annual $66.30 $11.77 per week $53.00 $9.25 per week $36.00 $6.45 per week $1.00 for 4 weeks $1.00 for 4 weeks FT Alphaville plus selected FT blogs yes yes yes yes Unlimited FT.com article access yes yes yes yes Unlimited mobile and tablet access yes yes yes yes Unlimited fast FT yes yes yes yes 5 year company financials archive yes yes yes yes The LEX column yes yes no yes ePaper access yes yes no yes Three exclusive weekly emails yes yes no yes Daily newspaper delivery yes no no […]

Posted On : Published By : Tom Whipple
Category:

London to fast-track shale permits

Baseline studies set for Lancashire, where industry pioneers are looking to begin British shale gas campaign. Photo courtesy of the British Geological Survey. LONDON, Aug. 13 (UPI) — The British government said Thursday it plans to fast-track the permit process for shale oil and gas exploration to ensure the industry can gain traction. Shale oil and gas exploration is in its infancy in a country looking to reduce its dependency on foreign reserves. The British Geological Survey estimated shale basins in the country may hold more than 1.3 quadrillion cubic feet of natural gas, a level the government said could help an economy with natural gas imports on pace to increase from 45 percent of demand in 2011 to 76 percent by 2030. The British government said Thursday it was calling on local councils to decide on shale permits within 16 weeks of an application. "To ensure we get […]

Posted On : Published By : Tom Whipple