North Sea Drilling at Record Low Spells End to Region’s Revival
The pace of drilling in the North Sea, the center of U.K. oil production for the past 40 years, has sunk to a record as crashing energy prices force explorers Continue Reading
Oil Rout Prompts Moody’s to Consider Shell, Total for Downgrade
Shell, Total and other oil companies have been battered by a more than 75 percent collapse in crude prices over the past 18 months amid a global supply glut. Royal Continue Reading
Shell Fourth-Quarter Profit Plunges as Oil’s Slump Deepens
Royal Dutch Shell Plc, which is buying BG Group Plc in the industry’s largest deal in a decade, expects fourth-quarter profit to drop at least 42 percent after the rout Continue Reading
Shell Profit Tumbles Amid Oil Price Slump
Shell said on Wednesday that earnings excluding identified items came in at between $1.6 billion and $1.9 billion in the three months to end-December, down from $3.3 billion for the Continue Reading
BP to Cut About 4,000 Exploration and Production Jobs
BP has about 80,000 employees world-wide. BP BP -0.66 % PLC said Tuesday it would slash about 4,000 jobs from its exploration-and-production unit—about one-sixth of the staff in that business—over Continue Reading
London Fails EU Annual Pollution Limits Eight Days Into 2016
Nineteen times this year, the concentration of nitrogen dioxide has exceeded the EU limit of 200 micrograms per cubic meter as an hourly mean. London failed annual European Union limits Continue Reading
British Army Is Deployed as Flooding Submerges Northern England
The British Army stepped in on Sunday to help evacuate hundreds of people from waterlogged homes across the country, as swollen rivers and heavy rainfall brought misery to swathes of Continue Reading
Shell Cuts 2016 Spending by $2 Billion as It Prepares for BG
Light trails made by passing automobiles outside at a gas station operated by Royal Dutch Shell at dawn in Guildford, U.K. Royal Dutch Shell Plc, Europe’s largest oil company, further Continue Reading
Shell Lowers 2016 Capital-Spending Plan By $2 Billion to $33 Billion
The spending announcement came as the Anglo-Dutch oil company published several key documents on its website in preparation for the main remaining hurdle to the deal: a shareholder vote, scheduled Continue Reading
Britain’s long transition from coal holds lessons for China: Kemp
Britain’s last deep coal mine closed on Friday, bringing the curtain down on an industry that once employed more than 1 million miners at over 3,000 collieries. Coal helped Britain Continue Reading
UK Shale Gas Could Create Thousands of Jobs, but More Work Needed
Task Force on Shale Gas report says that a UK shale gas industry could create thousands of jobs but more exploratory work is required to determine exactly how much gas Continue Reading
Shell clears last hurdle for BG Group merger
After clearing the last regulatory hurdle, Royal Dutch Shell said its planned merger with BG Group will require restructuring and a reduction in head counts. The Chinese Ministry of Commerce Continue Reading
BP makes headway in North Sea campaign
British energy company BP said it started sea trials for a floating production platform that will serve as a hub for developments west of the Shetland Islands. BP, working on Continue Reading
EU clears clean British power plant
A European regulator said the benefits of moving a British power plant from coal to biomass outweigh any concerns about competition stemming from state support. The British government in December Continue Reading
For Shell and BG, All Roads Lead to Lower Spending
Royal Dutch Shell RDS.A 0.28 % can’t forcibly renegotiate the deal it struck in April to buy oil and gas producer BG: The U.K. Takeover Panel wouldn’t allow it. And Continue Reading
The Night Britain’s Lights Went Out
National Grid , NGG 0.54 % the company responsible for keeping Britain’s lights on, declared last month that the margin between electricity supply and demand over the coming winter would Continue Reading
Seventy Britons killed in Syria and Iraq – Home Office official
Talha Asmal, believed to be the UK’s youngest suicide bomber, was killed in Iraq in June Between 750 and 800 Britons have gone to Syria and Iraq, and 70 have Continue Reading
On eve of Paris climate summit, Britain pulls the plug on renewables
POWER PLAY | Cheap electricity, a changing climate This is part of a series exploring how the world’s hunger for cheap electricity is complicating efforts to combat climate change. Wind turbines sit in the North Sea at the London Array offshore wind farm, a partnership between Dong Energy and Abu Dhabi-based Masdar. (Simon Dawson/Bloomberg News) LONDON — After standing dormant for 34 years, the Bankside Power Station was reborn last month. The onetime oil-fired, soot-spewing electric power plant, shut down and then converted into the Tate Modern, the world’s most popular contemporary art museum, is back producing energy again. Its roof has been coated with solar panels, which soak up the sun’s rays even on a cloudy London afternoon and help illuminate the avant-garde works in the galleries below. But rather than a shiny vision of modernity, the solar installation may become a sad remnant of a lost future. […]
British economy stepping away from coal
British energy secretary says coal-fired power will come to an end by the middle of the next decade. UPI/Stephen Shaver LONDON, Nov. 18 (UPI) — Joining other major world economies, the British government announced plans to phase coal out of its energy portfolio within the next decade. "It cannot be satisfactory for an advanced economy like the U.K .to be relying on polluting, carbon intensive 50-year-old coal-fired power stations," British Energy and Climate Change Secretary Amber Rudd said in a statement. Rudd said the government would start restricting the reliance on coal-fired power by 2023 and close all coal-fired power stations by 2025. A federal plan in the United States calls for a 32 percent reduction in emissions of carbon dioxide, a potent greenhouse gas, by 2030. State governments under the plan are called on to outline their own agendas. New York’s government was praised for setting a gold […]
U.K. North Sea Oil Decommissioning Costs Set to Rise, Group Says
The cost of dismantling oil production facilities in the U.K. North Sea over the next decade will be higher than previously forecast as more fields are scheduled to halt production, according to a group representing the British industry. Decommissioning costs will rise to £16.9 billion ($25.7 billion) for the 10 years to 2024, compared with last year’s guidance of £14.6 billion, according to a statement from Oil & Gas U.K. Plugging and abandoning wells makes up the biggest part of the decommissioning costs, at about 46 percent, the group said. “Over the next decade, 79 platforms are forecast for removal” in the U.K. continental shelf, Oil & Gas U.K. said. That’s about 17 percent of the 470 installations that will need decommissioning over the next 30 to 40 years, it said. Crude has fallen more than 45 percent in the last year, making some projects uneconomic and forcing producers […]
Bank of England gauges impact of lower oil prices
Bank of England offers measured take on impact of lower crude oil prices, but notes inflation is below a level considered to be healthy. File Photo by Hugo Philpott/UPI LONDON, Nov. 10 (UPI) — With about 60 percent of the drop in crude oil prices linked to demand issues, the Bank of England suggested pressure may be negative for the British economy. Lower crude oil prices have translated to a de facto form of stimulus to consumers and consuming nations, but left exporters struggling to cope with weakened economies. The Canadian economy most recently said it was flirting with recession. In September, the Russian Central Bank warned of a prolonged slump in crude oil prices and said there were "persistent risks of considerable economic cooling" in Russia. The Bank of England said in a November report on inflation there were key market factors to gauge when determining the risks […]
UK wholesale natural gas prices fall on solid supply, mild weather forecasts
UK wholesale natural gas prices fell at the open Monday because the UK gas system was well supplied due to high LNG sendout combined with robust Norwegian gas imports and demand dampened by mild weather. National Grid 10:00 am local time demand forecasts for Monday were 241 million cu m with physical flows seen at 244 million cu m/d. Both the within-day and day-ahead NBP contracts dropped below 35 pence/therm in early Monday trading and were seen at 34.90 p/th and 34.85 p/th respectively, down 0.325 p/th and 0.25 p/th from the Friday assessments. LNG sendout from the South Hook LNG terminal ramped up at the beginning of Monday’s gas day after having fallen over the weekend and been low on Friday due to an unplanned outage — flow rates were seen at 33 million cu m/d Monday morning. Article continues below… European Gas Daily is a flagship Platts […]
Oil Slump Pits U.K. Carrots Against Norwegian Stick in North Sea
The Oseberg A offshore gas platform operated by Statoil ASA stands in the Oseberg North Sea oil field 140kms from Bergen, Norway. Faced with the collapse in oil prices, the two dominant North Sea producers are taking opposite approaches to bolster dwindling investment: The U.K. is offering carrots, while Norway is wielding a stick. Britain plans to extend the 1.3 billion pounds ($2 billion) of tax cuts granted to producers in March after more than one in three fields was rendered uneconomic by the slump in crude. In contrast, Norway has shunned incentives and warned companies that scrapping projects could hurt their chances of getting new Arctic licenses. The differing strategies highlight the divide between depleted British waters and the untapped potential and larger reserves on the Norwegian side of the North Sea. Norway can afford to be uncompromising, while the U.K. struggles to extend the life of aging […]
Costs bear down on venerable Shetland oil industry
The North Sea oil industry, particularly the Shetland region at its core, is showing the strain of low oil prices, raising questions about its viability. The demise of the four-decade old UK industry has been predicted many times, with recent concerns centered on taxation and possible independence for Scotland. After oil prices collapsed last year, lobby group Oil and Gas UK predicted 20% of UK oil production could be shut down this year. Instead, only a few fields have been shut and oil production is booming, rising 14% year on year to a million barrels per day in the second quarter. Investment reached a record GBP14.8 billion ($23 billion) last year, Oil and Gas UK now says. But the reality of oil prices halving, and staying that way, is hurting. That companies have hesitated to decommission aging facilities is perhaps unsurprising. Dismantling the offshore structures of a past era, […]
Shell Reorganizes as it Plans for ‘Prolonged Downturn’
Shell reorganizes its upstream operation as it plans for a prolonged downturn due to low oil prices Royal Dutch Shell plc said Tuesday it is planning for a prolonged downturn due to low oil prices as the firm announced a reorganization of its upstream operation would increase accountability for performance and align the company to deliver on its strategy. In a statement to coincide with the firm’s ‘management day’, Shell said that both its net investment and dividend payments have been covered by operating cash flow in the year to the end of the third quarter of 2015 – a period during which oil prices averaged $60 per barrel. Shell highlighted cost cutting that has seen a 10-percent reduction in operating costs and a 20-percent reduction in capital spending during 2015, together amounting to $11 billion. The firm’s drive to reduce costs and simplify its business has led to […]
Shell starts November with asset sales
Royal Dutch Shell announces divestment from Chinese and French markets after reporting weak results for the third quarter. File photo by Brian Kersey/UPI THE HAGUE, Netherlands, Nov. 2 (UPI) — After reporting heavy losses for the third quarter, Royal Dutch Shell said Monday it sold off stakes in Chinese and French holdings in the downstream sector. For $510 million, Shell said it sold off its liquefied petroleum gas business in France to rival DCC Energy. The divestment includes the staff from business entity Butagaz and the brand. In China, for a confidential sum, the Dutch supermajor said it sold a 75 percent stake in a lubricants division to Chinese investment firm Huo’s Group and U.S.-based multinational investor The Carlyle Group. "Both divestments are consistent with Shell’s strategy to concentrate its downstream footprint on assets and markets where it can be most competitive, and to divest its LPG businesses worldwide," […]
Shell Steams Ahead With BG Takeover With Promise of More Savings
Royal Dutch Shell Plc said its record takeover of BG Group Plc will still deliver value to investors even in a prolonged oil-industry downturn and reshaped its business in preparation for the acquisition. Europe’s biggest oil company will save an addition $1 billion in operating costs from the combination with BG, bringing the total estimate of synergies from the deal to $3.5 billion, Shell said in a statement on Tuesday. The takeover will still add to the company’s earnings per share and cash flow from operations even after the outlook for Brent crude prices to 2018 dropped by $10 to $15 a barrel since the deal was announced in April. Oil’s renewed slump to a six-year low in August prompted some investors to question the logic of the acquisition, valued at $70 billion when it was announced. Shell expects the deal to expand its access to oil reserves in […]
Shell swings to $7.4bn loss on oil price slump and axed projects
Sign up for quick access to a wealth of global business news, including: Shell swings to $7.4bn loss on oil price slump and axed projects 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 […]
Shell’s $7.4 Billion Loss Raises Stakes for CEO’s Big Takeover
Royal Dutch Shell Plc’s worst loss in at least 16 years has further stoked concerns about the wisdom of buying BG Group Plc. For now at least, investors are still giving Chief Executive Officer Ben Van Beurden the benefit of the doubt. Europe’s biggest oil company said it will press ahead with its largest-ever acquisition even as the worsening outlook for energy prices contributed to asset writedowns of almost $8 billion. Van Beurden said in July that BG Group’s assets including Australian natural gas plants and Brazilian oil fields would add to Shell’s cash flow with crude at $67 a barrel in 2016, a position he declined to repeat Thursday. “He’s walking a thin line — a lot of investors believe the BG deal would be dilutive for Shell at these oil prices rather than accretive,” Philip Lawlor, a strategist at Smith & Williamson Investment Management LLP in London, […]
Oil majors rush cuts to hit $60 break-even
Sign up for quick access to a wealth of global business news, including: Oil majors rush cuts to hit $60 break-even 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 For […]
Oil at $60 Is the Magic Number for BP in Prolonged Downturn
BP, one of the first companies to predict a prolonged price downturn, has "reset" its business to generate surplus cash flow with oil at about $60 a barrel by 2017. (Bloomberg) — For Europe’s biggest oil companies, $60 is the magic number. BP Plc, one of the first companies to predict a prolonged price downturn, has “reset” its business to generate surplus cash flow with oil at about $60 a barrel by 2017. It joins Total SA, which last month unveiled investment cutbacks and project delays that will enable it to fund dividend payouts in the same circumstances without the need to borrow. A year after oil sank into a bear market, the industry is preparing for an extended downturn, with drillers slashing investments in exploration and production by a record 20 percent this year, according to International Energy Agency. With third-quarter earnings season barely under way, producers in […]
UK Shale Gas Industry Requires ‘Sea Change’ in Regulatory Capacity
There must be a "sea change" in the level of regulatory capacity for the UK’s shale gas sector, according to a presentation at a shale gas summit in London on Tuesday. There must be a “sea change” in the level of regulatory capacity for the UK’s shale gas industry, according to a presentation at the 6th annual Shale Gas Environmental Summit in London, organized by conference producer SMi. The presenter, who did not want to be named, stated that most of the UK’s drilling regulations relate to offshore operations due to the country’s focus on that sector. Delegates at the event, which included a range of representatives from the oil and gas sector, echoed the speaker’s comments, with one delegate stating: “If we’re drilling thousands of wells and have hundreds of pads, there has to be a…change in the level of regulatory capacity, because most of our regulation at […]
Shell Makes Biggest Net Loss in at Least a Decade on Price Slump
Royal Dutch Shell Plc reported its biggest net loss in at least a decade as it wrote down the value of assets and lowered its oil-price expectations. The company, which is buying BG Group Plc in the industry’s largest deal this year, reported a third-quarter net loss of $7.42 billion, compared with a profit of $4.46 billion a year earlier. It took charges totaling $7.89 billion following its withdrawal from Alaskan offshore exploration and a Canadian oil-sands project. Profit adjusted for one-time items and inventory changes dropped 70 percent to $1.8 billion, The Hague-based Shell said Thursday in a statement. That missed the $2.92 billion average estimate of 17 analysts surveyed by Bloomberg. Europe’s biggest oil producer has cut jobs and reduced spending this year as Chief Executive Officer Ben Van Beurden prepares the company for prolonged market stagnation. Crude’s decline in the past 16 months has been brutal […]
Low Oil Prices Take a Toll on Royal Dutch Shell in Quarter
Photo A Royal Dutch shell drilling unit arriving in Port Angeles, Wash., earlier this year, intended for use in the Arctic. The company has cut back on its exploration efforts in the Alaskan Arctic and taken billions of dollars in write-offs. Credit Daniella Beccaria/seattlepi.com, via Associated Press LONDON — Lower petroleum prices took a big toll on Royal Dutch Shell in the third quarter. The company reported a loss of $7.4 billion, compared with a profit of $4.5 billion in the quarter a year earlier. Adjusted for inventory changes and one-time items — a more closely watched measurement — earnings fell 70 percent to $1.8 billion. The company took about $7.9 billion in write-offs for its recently halted exploration venture off Alaska, a canceled heavy- oil project in Canada and other operations. The financial results for the company, based in The Hague, come as the oil industry is grappling […]
BP Details Plans to Cope With Weaker Oil Prices
LONDON— BP BP -1.88 % PLC on Tuesday laid out plans to cope with an extended period of low oil prices that anticipate crude at $60 a barrel in 2017 as it reported third-quarter earnings that nearly halved compared with a year earlier. The oil industry has been buffeted over the last 16 months by a sharp slump in oil prices. The third quarter was particularly brutal as the price of international benchmark Brent crude dropped to around $50 a barrel, its lowest level since the financial crisis and roughly half its level during the same period last year. Brent traded at about $47 a barrel on Tuesday. BP has already announced plans to cut spending and reduce costs this year in preparation for a sustained period of low prices, but on Tuesday gave the first indication of its longer term plans and price expectations. Shares in BP rose […]
BP shrinks further to weather extended oil slump
BP announced on Tuesday a third round of spending cuts and more asset sales in the coming years to tackle an extended period of low oil prices after third-quarter profits Continue Reading
The North Sea Dilemma: Continue to Invest or Start Decommissioning?
Consultant Roland Berger discusses whether cost cutting today is removing the ability of oilfield services companies to capitalize on the opportunities of tomorrow? This time last year, oil prices were at $95 per barrel and had been averaging around that level since 2011. Twelve months on, the factors that caused the initial price drop – such as unconventional reserves in North America and OPEC’s unwillingness to reduce production – show no signs of abating and have been re-enforced or supplanted by new ones as China’s demand slows and sanctions are lifted in Iran. As a consequence, the price of oil dropped again in September to $48 per barrel and it is clear that what was originally thought to be a short-term phenomenon is looking increasingly more medium, if not, long term. In this environment, capital expenditure budgets for exploration have been significantly scaled back and North Sea operators are […]
Shell CEO dismisses concern over value of fossil fuel reserves
Low-carbon, renewable energy sources are unlikely to replace the role of fossil fuels any time soon meaning the key value of oil companies’ proven reserves are not under threat from growing concerns over climate change, Shell chief executive Ben van Beurden said Tuesday. In an apparent reply to recent concerns voiced by the head of the UK’s central bank over the risks of stranded oil industry assets due to rising climate fears, van Beurden said alternatives to fossil fuels are still a long way from replacing conventional fuel sources for the world’s biggest energy consuming sectors. "I know that some people would like fossil fuels to be replaced by renewables as we speak. But for technical and economic reasons, this can only happen step by step," van Beurden told the Oil & Money conference in London. Bank of England Governor Mark Carney last week said investors should be cautious […]
U.S., BP Finalize $20.8 Billion Deepwater Oil Spill Settlement
The Deepwater Horizon oil spill in 2010 was the largest oil spill in U.S. waters. The announcement by top officials at the Justice, Commerce, Agriculture and Interior departments, along with the Environmental Protection Agency, puts the final touches on the biggest pollution penalty in U.S. history. A consent decree was filed in federal court in New Orleans Monday morning outlining the settlement terms. When the tentative terms of the deal were announced by the Justice Department in July, the company put the total price tag at $18.7 billion, while Justice Department officials said it was $20 billion. Monday’s announcement explained that discrepancy, which was due to the government counting money BP has already paid and because the parameters of some compensation are still being calculated. Attorney General Loretta Lynch on Monday called the settlement “a strong and fitting response to the worst environmental disaster in U.S. history.’’ She said […]
Shell CEO `Pulling Out All the Stops’ to Safeguard Dividends
Royal Dutch Shell Plc is “pulling out all the stops” to safeguard its dividend in a world where oil prices remain “lower for longer,” Chief Executive Officer Ben Van Beurden said. Europe’s biggest oil company is also protecting a plan to buy back shares and keeping its investment program “steady for the future,” Van Beurden said in e-mailed comments before a speech in London on Tuesday. Oil’s collapse in the past year has forced Shell and its peers to reduce costs, defer projects and hunker down for a prolonged period of low prices. Even with crude trading for about $50 a barrel, Van Beurden and BP Plc boss Bob Dudley have made dividends their top priority. Shell has weathered market ups and downs for seven decades — including oil at less than $10 in the 1980s and 1990s — without cutting shareholder payouts. The company is “geared to generate […]
Rolls-Royce to Cut 400 Marine Jobs as Oil Hits Ship Sales
Rolls-Royce Holdings Plc said it will cut another 400 jobs at its marine-engines arm as the oil-price decline continues to weigh on demand for the specialist offshore vessels that the business helps power. The cutbacks will save 40 million pounds ($61 million) a year, with incremental benefits from 2016 onwards, the London-based company said in a statement Monday. Most of the early savings will be invested in increased research and development, the company said. Profit and revenue guidance for the marine unit remains unchanged, according to Rolls-Royce, which is cutting more than 3,000 jobs across its entire business. The cuts announced Monday follow the elimination of 600 factory posts at the division announced in May, mostly focused on Norway, where Rolls-Royce’s marine manufacturing operations are based. Rolls-Royce is slimming down the marine unit from a workforce of 5,800 as Chief Executive Officer Warren East undertakes a review of the […]
Report: British North Sea won’t rebound until 2017
British oil and gas sector planner Ian Wood said low crude oil prices will endure through at least 2018. File photo by A.J. Sisco/UPI LONDON, Sept. 28 (UPI) — The British oil and gas sector is in a short-term decline with no chance of recovery for at least two years, an industry planner told the Financial Times. Low crude oil prices, down about 50 percent from last year, has forced energy companies to cut spending on exploration and enact layoffs in an effort to reserve capital. Ian Wood, a retired businessman who last year charted a North Sea recovery, told the Financial Times crude oil prices would likely stay low for at least two more years. "Oil at $35 to $55 [per barrel] is the likely scenario into 2017, and I think the best guess right now for a recovery in the North Sea is 2017-18," he said. Operating […]
Britain’s oil demand is growing again: Kemp
UK petroleum consumption is growing at some of the fastest rates for a decade, as strong economic growth and cheaper fuel prices spur increased use. Consumption of petroleum products rose by 1.6 percent in the first six months of 2015 compared with the same period a year earlier, according to the UK Department of Energy and Climate Change (DECC) ( link.reuters.com/zud75w ). Consumption has been growing consistently since the third quarter of 2014, coinciding with a maturing economic recovery and a sharp drop in oil prices ( link.reuters.com/wud75w ). Like most of the other advanced industrial economies, Britain’s consumption of petroleum products peaked in 2005, then declined sharply as oil prices climbed to more than $140 per barrel in 2008. The recession took another big chunk out of oil consumption, but even as the economy recovered between 2010 and 2014, demand mostly continued to fall as high prices encouraged […]
The $12 Billion Reason BP Isn’t Worried About a Hostile Takeover
Oil giant BP Plc, which was said to be readying defenses for potential takeover offers, has a little-known ace in the hole: a disclaimer in its Macondo spill settlement that could tack $12.6 billion onto the price tag. A potential buyer might be forced to accelerate the payment of up to two thirds of the $18.7 billion in penalties the company agreed to pay the U.S. and several states, according to company filings. As it stands, BP has more than 15 years. An option that gives the federal government and some states the ability to demand faster payment in a takeover effectively hands them a veto power over any deal. Together with the company’s exposure to Russia amid sanctions and the worst oil crash in decades, it amounts to a powerful deterrent to suitors, said William Arnold, a former banker and executive at Royal Dutch Shell Plc. “This would […]
Britain must prepare for life without oil
The man tasked with saving the UK’s North Sea oil industry says it will take two years or more to recover from its problems and that Britain should start preparing for life without oil. Last year Sir Ian Wood wrote a report, commissioned by the government , into how to maximise the North Sea’s oil and gas, which has been a big driver of the economy since the 1970s but has been in long-term decline since the late 1990s. In an interview with the Financial Times, Sir Ian Wood warned: “Oil at $35 to $55 [per barrel] is the likely scenario into 2017, and I think the best guess right now for a recovery in the North Sea is 2017-18.” The North Sea today produces about 1.5m barrels of oil per day, compared with 4.5m at its peak. Its problems have increased significantly over the past year, however, as […]
Shale gas a common-sense energy choice, London says
British Geological Survey begins new baseline studies at potential hydraulic fracturing site just as the government aims to accelerate the industry. Photo courtesy of the BGS LONDON, Sept. 23 (UPI) — Natural gas from shale can be the energy bridge toward a greener future while at the same providing economic stimulus, the British government said. The British government estimates 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. Andrea Leadsom, minister of state at Department of Energy and Climate, said a shale gas industry would help ensure energy security and potentially add 65,000 new jobs to the British economy. "Operators will pay communities $150,000 for each exploration well site plus 1 percent of […]
British energy sector bracing for downturn
British energy sector should brace for further staff cuts, industry body warns in an annual report. File photo by Maryam Rahmanian/UPI LONDON, Sept. 9 (UPI) — The British energy sector should brace for more staff reductions as companies take steps to endure the weak crude oil market, industry body Oil & Gas U.K. said. The industry’s lobbying group in its annual report said new spending in exploration and production is expected to fall by up to $6 billion per year over the next three years for its lowest levels since the 1970s. "This great industry of ours is facing very challenging times," the group’s chief executive, Deirdre Michie, said in a statement. Michie’s group in an early 2015 report said the market outlook was "bleak." The government’s overseer, British Oil and Gas Authority, this week called on companies to consider "all possible alternatives" to layoffs. Job losses in the […]
U.K. North Sea Oil Industry Warns Investment May Fall 80% to ’17
Investment in U.K. North Sea oil and gas projects could drop as much as 80 percent by 2017 as the collapse in oil prices forces the industry to cut back. Capital investment across the industry of 14.8 billion pounds ($22.8 billion) last year will probably decline by 2 billion to 4 billion pounds annually to 2017, Oil & Gas U.K., an industry lobby group, said in its annual economic report Wednesday. “This great industry of ours is facing very challenging times,” Deirdre Michie, Oil & Gas U.K.’s chief executive officer, said in a statement. “Exploration for new resources has fallen to its lowest level since the 1970s” and few new projects are gaining approval from “hard-pressed” companies, she said. The decline in crude prices of more than 50 percent over the past year has forced the oil industry to review projects and reduce operating costs. The U.K. North Sea […]