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UK oil and gas forecasts 'incredibly pessimistic', says Scotland

Scottish oil and gas Among N-56’s recommendations is that a more competitive tax regime is established for the North Sea. Photograph: Andy Buchanan/PA Forecasts of future revenues from North Sea oil and gas by an economics watchdog have been described as "incredibly pessimistic" and could be six times lower than the actual levels, according to a report. The Scottish and UK governments have repeatedly clashed over the future of the industry, particularly around forecasts from the UK Office for Budget Responsibility on the amount of cash it expects to be raised from the North Sea. The Scottish government argues the OBR forecasts are based on a "very low estimate of future total production", while its own figures have been criticised by opponents who claim they are overly optimistic. In July, the OBR chairman, Robert Chote, revealed the body was now forecasting that revenues of £61.6bn would be raised between […]

Posted On : Published By : Tom Whipple
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UK oil and gas forecasts ‘incredibly pessimistic’, says Scotland

Scottish oil and gas Among N-56’s recommendations is that a more competitive tax regime is established for the North Sea. Photograph: Andy Buchanan/PA Forecasts of future revenues from North Sea oil and gas by an economics watchdog have been described as "incredibly pessimistic" and could be six times lower than the actual levels, according to a report. The Scottish and UK governments have repeatedly clashed over the future of the industry, particularly around forecasts from the UK Office for Budget Responsibility on the amount of cash it expects to be raised from the North Sea. The Scottish government argues the OBR forecasts are based on a "very low estimate of future total production", while its own figures have been criticised by opponents who claim they are overly optimistic. In July, the OBR chairman, Robert Chote, revealed the body was now forecasting that revenues of £61.6bn would be raised between […]

Posted On : Published By : Tom Whipple
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Greenpeace doubts British fracking survey

Greenpeace said a British survey showing public support for hydraulic fracturing is biased because the industry itself was behind the assessment. Research group Populus conducted a survey for U.K. Onshore Oil and Gas that found more than half of the 4,000 people it surveyed expressed support for hydraulic fracturing in the country, compared with 27 percent expressing no opinion and 16 percent opposed. A spokesman for Greenpeace said the poll was biased because it was backed by the oil and gas industry. "This is just more smoke and mirrors to hide the obvious fact that fracking remains a highly controversial industry, far less popular than clean and safe alternatives like wind and solar," the spokesman said . The government in July announced it was opening up the bidding process for shale deposits in the country. The British Geological Survey estimates the country has enough shale on hand to meet […]

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In Britain, Nuclear Reactors to Be Shut Down in Fault Investigation

LONDON — EDF Energy, the British subsidiary of the French state-controlled utility, said on Monday that it was shutting down three nuclear reactors and that a reactor with a fault that has been shut down since June would remain so. The facilities, which are being investigated as a precaution, generate nearly a quarter of nuclear capacity in Britain. The British Office for Nuclear Regulation said that there had been no release of radioactive material and no injuries. Industry experts did not anticipate much effect on electricity supplies or prices in the short term. EDF said that over the next few days it would idle a second reactor at the facility where the fault was found last year, Heysham 1, in northwest England. The company said it would also shut down two other reactors of similar design at Hartlepool in northeast England to investigate whether they had the same flaws. […]

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British shale company to set new bar

British shale gas pioneer Cuadrilla Resources said Wednesday it’s confident it can kick-start a new industry in the country in a safe manner. Cuadrilla in June deposited 21 chapters of environmental studies with the Lancashire County Council associated with plans for up to four shale gas exploration wells in the area. The company produced an 8-minute video with environmental consultant group Arup outlining the information in the documents. Cuadrilla Resources Chief Executive Officer Francis Egan said the industry would start off on the right foot. "We know shale gas exploration can be done safely, securely and in an environmental responsible way, and we will do that," he said in a statement . Protests against Cuadrilla’s early shale efforts in the village of Balcombe last year became unruly. Last week, officials in the area balked on a separate drilling application. Less than a week later, the British […]

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Royal Dutch Shell Profit Jumps

Royal Dutch Shell PLC said second-quarter earnings more than doubled from a year earlier as the Anglo-Dutch oil and gas group benefited from higher production of liquid petroleum and higher prices for certain products. Shell said Thursday that profit for the period came in at $5.15 billion on a current cost-of-supplies basis—a measure similar to profit reported by U.S. oil companies—compared with $2.39 billion in the same period last year. Excluding one-time items, current-cost-of-supplies profit was $6.13 billion, up 33% from $4.60 billion last year. Second-quarter sales were $115.27 billion, up slightly from $114.35 billion a year earlier. "Our financial performance for the second quarter of 2014 was more robust than year-ago levels but I want to see stronger, more competitive results right across […]

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BP warns of impact of Russia sanctions on profits

Energy company BP warned Tuesday that further international sanctions on Russia could hurt its profits because of its stake in the country’s oil giant, Rosneft. The company said any erosion of its relationship with Rosneft – which is majority controlled by the Russian state, with BP holding a 19.75 percent stake – could also adversely impact its reputation. The U.S. has already put sanctions on Rosneft’s president and prohibited the company from tapping U.S. markets to raise money. The European Union is this week also considering broadening its sanctions to prohibit state-owned companies from using European capital markets. "If further international sanctions are imposed on Rosneft or new sanctions are imposed on Russia or other Russian individuals or entities, this could have a material adverse impact on our relationship with and investment in Rosneft, our business and strategic objectives in Russia and our financial position and […]

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EU finalises Russian sanctions as BP warns of impact on its business

As the EU prepared to impose far-reaching sanctions on Russia on Tuesday, BP became the first big multinational to warn of the potential scale of the damage to its business in the country. The UK oil major, which owns nearly 20 per cent of Rosneft , the Russian oil group that is majority held by the Russian government, said that its increasing profits in Russia could be hit by the growing push for tighter sanctions. Rosneft is already on the US blacklist, but until now has not been covered by restrictions introduced by the EU. More On this story On this topic IN Europe “If further international sanctions are imposed on Rosneft or new sanctions are imposed on Russia or other Russian individuals or entities, this could have a material adverse impact on our relationship with and investment in Rosneft, our business and strategic objectives in Russia and our […]

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British shale debate town snubs permit

A British advocacy group said Wednesday it applauded a decision from a city council at the heart of the country’s shale debate to reject a drilling permit. The West Sussex County Council said it refused an application by Celtique Energy for a three-year oil and gas exploration bid. A drilling site in Balcombe, in West Sussex county, was the target of major protests last year by activists concerned over the drilling operations of Cuadrilla Resources. Demonstrators said the campaign was a prelude to a hydraulic fracturing operation, though the process known also as fracking was not conducted at the site. Brenda Pollack, a campaigner with the British Friends of the Earth, said the latest West Sussex decision was a step in the right direction. "Nobody wants to see Sussex ruined by industrial drilling for dirty fossil fuels," she said in a statement . "If Celtique had […]

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London signs off on Rampion wind farm

| License Photo The British government said Wednesday it signed off on plans to build the 700 megawatt Rampion wind farm off the coast of Sussex. German utility company E.ON is leading development of the offshore installation that should be completed by 2019. The British government said it expects the project to bring in more than $3.4 billion worth of investments to its economy. Signing off on the project Wednesday, the British government said the Rampion wind farm would generate enough energy to meet the annual needs of 450,000 households. The government said the consent decision is a testament to its commitment to renewable energy resources. "We’re driving investment in our energy security, and our plans have made us number one in the world for investment in offshore wind energy," British Energy and Climate Change Secretary Ed Davey said in a statement . DECC in a recent assessment said […]

Posted On : Published By : Tom Whipple