Peak Oil is You
Donate Bitcoins ;-) or Paypal :-)
Page added on November 12, 2016
The Largest Threat To North Sea Oil
The Brexit vote has not shaken up forecasts for North Sea oil and gas production, according to BMI Research, but a successful second bid for Scottish independence could slash output in the region.
BMI Research’s core view on the UK’s primary oil and gas sector remains unchanged, with oil output estimated to reach 978,000 barrels per day (bpd) in 2025.
Oil production is expected to grow through the 2018, driven by investments made in the days of higher oil prices between 2010 and 2014.
However, a downside scenario in which a second Scottish independence referendum is passed would create at least two further years of uncertainty for the sector from 2019 and could push production to below 864,000 bpd in the next decade, BMI said.
If Scotland were to initiate leaving the UK, there would be significant delays to new project investment, reduction of reinvestments, more job losses – which have already taken a toll on the sector – and more decommissioning due to tax incentives offered by Westminster.
Assuming maritime boundaries were drawn along the existing median line used to allocate fishing rights, an independent Scotland would take 95 per cent of oil production and 55 per cent of gas production, according to the Department of Energy and Climate Change.
In an upside scenario, in which confidence in the North Sea is reaffirmed, investment in new oil and gas projects would be encouraged, weaker sterling would reduce costs and a proposed reduction to the area’s frequently-slammed corporation tax, could lead to output reaching 1.1m bpd.
North Sea oil workers, unhappy with oil services firms’ plans to introduce lower pay, longer hours and more demanding work schedules, downed their tools to strike for the first time in a generation this summer.
Low oil prices have taken their toll on oil producers and the black stuff is still worth less than half of its value in mid-2014, when prices were above $100 a barrel, as massive oversupply and flat demand continue to blight the market.
By Francesca Washtell via City AM
Oilprice.com
3 Comments on "The Largest Threat To North Sea Oil"
Anonymous on Sat, 12th Nov 2016 9:36 pm
LoL, the biggest ‘threat’ to North Sea oil, is the simple fact the bulk of it has already been extracted and puked back out the tail-pipes of british and EU cars. The best is long gone, gone up in smoke, literally. Some is still left, sure, but it wont make anyone rich, aside from a few investors, and it wont carry the UK for much longer. Even in its heyday, britain choose to run deficits and spend money on wars with its uS\Israeli masters, even when North Seas prime. Never set a dime of it aside either.
Shoulda thought of all this 30 years ago.
Theedrich on Sun, 13th Nov 2016 2:37 am
Regardless of the oil situation, it is long past time for Scotland to leave the UK. The English conquered Scotland by force, just like they did Ireland and many other places in their vaunted empire. The Scots should now assert their independence and chart their own destiny. They need not listen to threats of financial collapse; they are quite capable of doing very well on their own. Compare South Korea (98,190 sq km, pop. somewhat over 51 million) with Scotland (78,759 sq km, pop. somewhat over 5 million) and one can easily envision the Scottish economy having no problems once the people there cease being “subject” to the English crown.
Ralph on Sun, 13th Nov 2016 3:39 am
The English did not conquer Scotland by force. The act of union was purely political when James VI of Scotland was crowned James I of England. In later centuries several Scottish rebellions were put down militarily, but by then the union was already a century old, even if widely seen as treachery by a corrupt elite of their day.