Peak Oil is You
Donate Bitcoins ;-) or Paypal :-)
Page added on May 9, 2013
At Least 9 More Decades for North Sea Oil
Oil and gas production in the UK North Sea can continue until the end of this century provided the right government policy decisions are made, according to Scottish Energy Minister Fergus Ewing.
Speaking to Rigzone at the Offshore Technology Conference in Houston Tuesday afternoon, Ewing said:
“In domestic terms, the [Scottish] industry is having a second major opportunity with a huge number major new developments going ahead, some of which are extensions of existing developments. For example, the Clair Ridge field has the potential to produce oil until 2055 according to BP.”
Clair Ridge is a project to further develop the Clair field with additional fixed platforms.
“The Clair field was actually discovered in 1977, and that’s ironic because we were told by London that the oil would run out in the 90s, and then in the 90s that it was going to run out in the Noughties,” Ewing said.
“I think it’s a theme that’s losing credibility because if BP comes along and says the Clair Ridge field will continue to produce until 2055 it’s a bit liberal to say the oil is going to run out because it ain’t.”
Ewing said that there were “huge opportunities” domestically for the Scottish oil and gas sector that would keep oil and gas production going.
“My personal view is that oil and gas production [offshore Scotland] will continue for the rest of the century provided we make the right policy decisions,” he said.
But Ewing insisted that fiscal stability is required and that a lot of damage to the sector was caused by the unexpected tax hikes that were introduced in the UK in 2011.
“Fortunately, a lot of that damage was undone the following year when the UK Treasury realized they had unsettled the whole industry, internationally, and shaken confidence in the viability of investing in the North Sea and west of Shetland. So, they then introduced measures on field allowances and decommissioning which we’ve welcomed. But in order to make sure that the longevity of the basin, especially in the southern North Sea, is as it should be there will no doubt be a need for more fiscal incentives than there are now,” Ewing said.
“It’s blindingly obvious that if it costs an extra $20 or $30 a barrel to get more oil out and if major operators have to invest hundreds of millions, if not billions, to do so then they have the choice of making that investment in fields where the oil does not cost an extra $20 or $30 a barrel, and therefore there does need to be a partnership between government and industry.”
“The impression I get is that they realized they made a big mistake and they acted to try to correct that and with a deal of success. But the danger is that perhaps in the Treasury they feel that it is currently a situation of ‘Problem solved!’ and complacency is the most dangerous attitude that you can have in government because almost always the problems are more complex than you realize.”
11 Comments on "At Least 9 More Decades for North Sea Oil"
Newfie on Thu, 9th May 2013 9:44 pm
We will never run out of oil but fewer and fewer people will be able to afford it.
Plantagenet on Thu, 9th May 2013 9:47 pm
If Scotland is ever going to free itself from the UK the time is now. The money from 90 more years of oil off the Scottish coast can turn Scotland into another wealthy mini-Norway.
Beery on Fri, 10th May 2013 12:43 am
“The Clair field was actually discovered in 1977, and that’s ironic because we were told by London that the oil would run out in the 90s, and then in the 90s that it was going to run out in the Noughties,” Ewing said.
Ewing is obviously an idiot. Not even the most peaky of peakists said that oil would ‘run out’. As for the Clair field, no one knows how much oil there is left there, or whether what’s there is even worth getting right now, so to claim it will produce until 2055 is purely a guess.
I’m sure that oil will be produced in the North Sea for the foreseeable future. The question is how much, at what price, and whether any but the super-rich will be able to afford it in the year 2100.
Kenz300 on Fri, 10th May 2013 1:27 am
Climate Change is real…….
Can we afford 90 more years of oil?
BillT on Fri, 10th May 2013 1:31 am
Eventually economy of scale will close down most fields. The common consumer has about maxed out his/her purchasing power. There will be a lot of oil left at $200 because they will not be able to sell it. Perhaps we should say we have passed “Peak Affordability Oil”? At least in the West. The East still gets enough energy advantage to maybe afford even $150 or $200 oil. We shall see.
Here in the Ps, a motor bike may have a side car that holds two people plus baggage. The stretched Jeep mini-buses, called Jeepneys, carry up to 18. And you don’t want to know how much stuff can be piled on a truck. lol Gas is not wasted here where the average wage is $10 per day and gas costs $5 per gallon.
SOS on Fri, 10th May 2013 2:53 am
Key words: as long as the right government policies are made.
It is all about the political science of peak oil politics.
keith on Fri, 10th May 2013 3:53 am
Looking for money
thylacine on Fri, 10th May 2013 4:08 am
Fergus Ewing is a Scottish Nationalist govt minister trying to make a case for an independent Scotland that will be funded by oil revenues. Yes, there is still a lot of investment going into the North Sea, but on the flip side there has been a steady 7% or so annual decrease in production for over a decade now. Maybe with some well placed investment they can slow the decline down, but the glory days are over. The time for an independent Scotland awash with oil funds is well behind us in the 1970s and 80s. Longer term, it will be back to living on the bones of their arse on farming, forestry and whisky.
GregT on Fri, 10th May 2013 5:19 am
The Clair Field could possibly produce up to 120,000 bpd at it’s production peak. The UK currently consumes almost 20 times that amount.
As long as the right government policies are made, and the oil is not sold to foreign interests, there will need to be a dramatic reduction in population, and standards of living in the UK. (Think dark ages )
If we could get our politicians to understand the science that is peak oil, maybe we could use the last remaining dregs to build out alternate infrastructure. Maybe our species might have a chance for a future on this planet.
BillT on Fri, 10th May 2013 11:45 am
GregT, the politicians know what is happening. They have no choice because they are all bought puppets of the big corporations that want BAU until it is impossible. That is the plan. Lords & serfs. If you don’t see that by now…
kiwichick on Sat, 11th May 2013 11:15 pm
GFN estimates the UK’s sustainable population @ 16.7 million
compared to actual population of 60 million plus