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North Sea Oil Defies Price Slump as Output Rises a Second Year

A person looks out towards an offshore gas platform operated by Statoil ASA in the North Sea. Photographer: Kristian Helgesen/Bloomberg The North Sea was thought to be the prime example of how the oil price slump hurt high-cost corners of the energy industry. Yet its crude output is defying the doomsayers. After an increase last year, the region’s production will rise again in 2015 to almost 3 million barrels a day, the first consecutive annual gains in 15 years, the International Energy Agency said Wednesday. The extra supply is entering a global market already “awash” with competing grades of oil, it said. The impact will be felt across the world because the North Sea — home of the Brent benchmark — plays an outsized role in the oil market. Even small gains in the region’s output can move prices significantly, according to consultant Energy Aspects Ltd. Production gains resulted […]

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BP commits to new North Sea spending

Bob Dudley’s BP seeks to breath new life into North Sea developments with major investment announcement. File photo by Roger L. Wollenberg/UPI LONDON, Aug. 5 (UPI) — Though the global energy sector is crimping available revenue streams, BP said Wednesday it planned billions of dollars of spending in the North Sea. "These are challenging times for the industry and we are having to make hard choices," BP North Sea Regional President Trevor Garlick said in an emailed statement. "Nonetheless, we remain committed to improving the competitiveness of the North Sea and to maximizing economic recovery from our fields." BP in a quarterly earnings report released last week said it lost $5.8 billion, which in part was a reflection of the July 2 settlement reached to resolve claims associated with the oil spill in the Gulf of Mexico in 2010. The British company said it earned $228 million from oil […]

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Shell to ax 6,500 jobs, cut spending to cope with lower oil prices

Shell’s company logo is pictured at a gas station in Zurich April 8, 2015. Royal Dutch Shell ( RDSa.L ) is to ax 6,500 jobs this year and step up spending cuts to deal with an extended period of lower oil prices which contributed to a 37 percent drop in the oil and gas group’s second-quarter profits. The Anglo-Dutch company also said it was planning more asset disposals as it pushes ahead with its proposed $70 billion acquisition of BG Group ( BG.L ), bringing total asset sales between 2014 and 2018 to $50 billion. "We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery," Chief Executive Officer Ben van Beurden said. Shell said it anticipated 6,500 staff and direct contractor reductions in 2015 from a total of nearly 100,000 employees. And the group said it would […]

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BP Swings to Second-Quarter Loss on Lower Oil Price, Deepwater Horizon Deal

BP fell to a loss in the second quarter. LONDON— BP BP -1.42 % PLC on Tuesday swung to a loss in the second quarter, as earnings were hit by lower oil prices and a multibillion-dollar charge relating to the deal it reached earlier this month to settle U.S. federal and state claims over the 2010 Deepwater Horizon disaster. The U.K. oil giant said its replacement cost loss—a number analogous to the net income that U.S. oil companies report—was $6.27 billion, compared with a profit of $3.18 billion a year earlier. The sharp decline includes a $9.8 billion pretax charge that BP recorded as part of an $18.7 billion agreement with the U.S. government and five states to settle legal claims relating to its Deepwater Horizon fatal oil spill in the Gulf of Mexico. The net charge recorded by the company for nonoperating items amounted to $7.5 billion. It […]

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BP Has Worst Profit in 10 Years on Libya Write-Off, Trading

BP Plc reported the lowest quarterly profit in at least 10 years after a boom in trading faded and the conflict in Libya forced almost $600 million of writedowns. Profit adjusted for one-time items and inventory changes dropped to $1.3 billion in the second quarter, 64 percent lower than a year earlier, the London-based company said Tuesday in a statement. That missed the $1.7 billion average estimate of 17 analysts surveyed by Bloomberg. “I am confident that positioning BP for a period of weaker prices is the right course to take” The weaker-than-expected results pile pressure on Chief Executive Officer Bob Dudley to cut capital spending to maintain dividends. The company is no longer benefiting from the strong trading that added about $350 million to profit in the first quarter, while a halt to operations in Libya eroded earnings from oil and gas exploration. “The miss is primarily because […]

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41 more North Sea oil, gas licenses announced

An offshore oil rig in the North Sea. Photo by I. Newton/Wikimedia LONDON, July 27 (UPI) — The United Kingdom Oil and Gas Authority (OGA) announced 41 new licenses Monday to explore the U.K. Continental Shelf in the North Sea. An additional 134 licenses were awarded in November 2014. The total of 175 licenses makes the round of applications among the largest since the licensing process began in 1964. "The U.K. Continental Shelf remains a world-class hydrocarbon province where significant resources and economic value remain to be realized. The good level of interest in the 28th round highlights the continued attractiveness of the U.K.’s oil and gas resources. Licenses are, however, just a start and industry, government and the OGA now need to work together to revitalize exploration activity across the basin and convert licenses into successful exploration wells," OGA Chief Executive Andy Samuels said in a statement Monday. […]

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British shale pioneer to push back against local council

Shale pioneer Cuadrilla Resources says it will appeal county decision to deny permits for a drilling campaign that would include hydraulic fracturing. Photo courtesy of Cuadrilla Resources LONDON, July 24 (UPI) — British shale pioneer Cuadrilla Resources said it planned to appeal June’s decisions by a county council to deny permits for a hydraulic fracturing campaign. "We have given careful consideration to appeal the planning decisions taken by Lancashire County Council," Cuadrilla Chief Executive Officer Francis Egan said in a statement. "This is a natural step in the democratic process for deciding any planning application." The council in Lancashire last month voted to refuse a permit to start a hydraulic fracturing campaign in the Preston New Road and Roseacre Wood sites. The council said it refused the applications because of noise and visual impact concerns, and "potentially severe" impacts on road infrastructure and traffic, respectively. In the past, the […]

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London proposes new fracking restrictions

British government proposes pulling some parts of the country off the table for hydraulic fracturing. Photo courtesy of Cuadrilla Resources. LONDON, July 16 (UPI) — The British government boasted of its environmental track record Thursday, saying it was taking steps toward excluding some areas from hydraulic fracturing. "The United Kingdom has one of the best track records in the world when it comes to protecting our environment while also developing our industries – and we’ve brought that experience to bear on the shale gas protections," Energy Minister Andrea Leadsom said in a statement. The British government published draft regulations that would place groundwater aquifers, as well as parks and heritage sites, off limits to potential hydraulic fracturing activities. Shale energy is in its infancy in the country, though Leadsom said the government was committed to developing the sector safely and economically. Her comments follow the publication of a set […]

Posted On : Published By : Tom Whipple