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Bad News day for the Limey Scum!

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  • Bad News day for the Limey Scum!

    North Sea faces record fall in oil and gas production

    North Sea oil and gas production could decline by as much as 22pc this year - the biggest annual slump on record – as maintenance on ageing infrastructure hits operations, the industry body has warned.

    Oil & Gas UK abandoned earlier forecasts of a "marginal" decline in production. Photo: Alamy

    By Emily Gosden, Energy Correspondent

    6:00AM BST 21 Aug 2013

    Oil & Gas UK said it now expected average output to fall to between 1.2m and 1.4m barrels of oil and gas per day (boepd) this year, down from 1.54m boepd in 2012.

    Malcolm Webb, Oil & Gas UK chief executive, warned of a “worrying decline” in the amount of time existing oil and gas fields spent producing, despite hailing record levels of investment, at £13.5bn this year.

    The group abandoned its earlier forecast, set in February, which had predicted that production would see only a “marginal” decline, of as little as 2.5pc, to between 1.45m and 1.5m boepd in 2013.

    The figures highlight the challenge facing the industry in extracting the remaining potential from the North Sea. In 2003, production stood at almost 4m boepd, but has fallen every year since.

    Natural decline as reserves in older fields are used up is being exacerbated by increasing time lost to unintended shutdowns for maintenance or following accidents, such as the major gas leak at Total’s Elgin field last year.

    However, Oil & Gas UK predict that the declining North Sea trend could see some temporary reversal. It forecasts that new investment could drive output close to 2m boepd by 2017 - but only if the problems of high levels of maintenance shutdowns are overcome.

    It expects average production efficiency - the ratio of actual production to the maximum potential of the fields - to have fallen to 60pc in 2012, down from about 80pc eight years ago. That decline represented a loss of almost 500m boepd in 2012.

    “The recent decline has resulted from deteriorating reliability, with extended maintenance shutdowns, compounded by several major production outages,” it said.
    Mr Webb said the industry was working with the Department of Energy and Climate Change to “tackle this serious concern through a joint task group”.

    DECC has also commissioned Sir Ian Wood, former chairman of oil services company Wood Group, to examine how to maximise recovery.

    The declining production leaves Britain ever more dependent on imports of oil and gas, and is one of the reasons ministers are so keen to test the potential of onshore oil and gas reserves such as shale gas.

    Oil and gas output is also a key contributor to wider economic data, with a slump in North Sea production blamed for a fall in GDP in the fourth quarter of last year.
    Oil & Gas UK predicts capital investment will hit £13.5bn in 2013, exceeding a previous forecast of £13bn, and up from £11.4bn in 2012. The North Sea had “not previously seen capital investment above £7bn since the early 1990s,” it said.

    Greg Barker, the energy minister, said the investment showed the industry was “in excellent health”.
    Oil & Gas UK identified a series of spurs for the investment including “renewed confidence among the major companies”, the impact of tax breaks and the development of new, more expensive techniques for extracting oil and gas from technically-challenging fields.Companies were also expected to spend £1bn on improving the “asset integrity” as they became more “risk averse” since BP’s Macondo disaster in the Gulf of Mexico in 2010.
    Last edited by BDAdmin; 08-21-13, 07:51 AM.

  • #2
    Re: Bad News day for the Limey Scum!

    Notice how they are having to invest more & more money for less & less production......


    • #3
      Re: Bad News day for the Limey Scum!

      Oh .............more "Good News"

      They were expecting a BIG tax take, they didn't get it...............ho ho ho


      • #4
        Re: Bad News day for the Limey Scum!

        Even better!

        So much for austerity: Government borrowed £1.3BILLION more in July as spending ROSE across Whitehall

        • Borrowing usually falls in July but this year it has soared instead
        • Public sector borrowed nearly £500m compared to £800m surplus last year
        • Deficit attributed to higher Government spending despite tax rises
        By Hugo Gye
        PUBLISHED: 12:16, 21 August 2013 | UPDATED: 13:29, 21 August 2013 13 shares

        The Government's deficit reduction efforts were dealt another blow today when it emerged that increased spending had pushed up borrowing by £1.3billion.

        Public sector net borrowing - excluding profits from quantitative easing - was £488million in July, compared with a surplus of £823million the previous month, according to figures from the Office of National Statistics.

        The month usually sees a healthy profit for the Government thanks to the payment of company tax, but runaway spending saw a deficit in July for the first time since 2010.

        Soaring: Government borrowing this year has been significantly higher than last year, as this graph shows

        Once around £400million of QE cash was included, public sector net borrowing was £62million in July - a complete turnaround on a year earlier, when the Government saw an £823million surplus.


        The ONS said higher public-sector spending was spread across departments, but the exact figure is expected to be downgraded by the Treasury in coming months.

        Blow: George Osborne's deficit reduction plans have run into trouble as borrowing increases

        The independent Office for Budget Responsibility, set up to monitor public finances, expects the deficit to come in at around £120billion for the year, above last year's £116.5billion deficit.

        The escalating deficit comes despite the Coalition's pledge to stabilise the public finances and start reducing Britain's national debt.

        A Treasury spokesman said: 'Strong tax receipts in July confirm that the economy is moving from rescue to recovery.

        'There is still a long way to go as the UK recovers from the biggest economic crisis in living memory, and the Government is sticking to the economic plan that has already cut the deficit by a third and enabled the private sector to create over 1.3million new jobs.'
        ONS figures showed total tax receipts in July excluding QE were 3.4 per cent higher year on year at £54.1billion, helped by increases in VAT, income tax, National Insurance contributions and stamp duty on home purchases.

        But corporation tax receipts dipped to £7billion from £7. billion a year earlier, despite increasing signs of growth in the economy.

        Central government spending rose by four per cent, to £51.2billion. Public sector net debt as a proportion of the UK's GDP hit a record for July, at 74.5 per cent.

        Falling behind: Although tax receipts have grown, higher public spending has pushed up the deficit

        Martin Beck, UK economist at consultancy Capital Economics, said the figures show the public purse has 'yet to benefit from the economic upturn'.

        He said: 'July typically sees a budget surplus, with this month an important one for corporation tax and self-assessment receipts.

        'But with growth in spending outstripping that in receipts, July 2013 saw a break with this.

        'So while signs of economic recovery should eventually feed through into an improvement in the public finances, it looks like the Chancellor will have to wait a while yet.'

        Figures showed the economy expanded by 0.6 per cent in the second quarter, from 0.3 per cent in the first three months of the year.

        Read more:
        Follow us: @MailOnline on Twitter | DailyMail on Facebook


        • #5
          Re: Bad News day for the Limey Scum!

          Is there anything that City is doing right now that makes sense for the general economy? Or are they just playing games, and wagering on the outcome?


          • #6
            Re: Bad News day for the Limey Scum!

            "They" are pumping money, cheap loans into it, but its sinking.............i say this "boom" will be a Dead cat bounce by Xmas.