Results 1 to 6 of 6

Thread: Bad News day for the Limey Scum!

Threaded View

  1. #1
    Join Date
    May 2007

    Default 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 at 07:51 AM.

Similar Threads

  1. Replies: 4
    Last Post: 05-06-13, 05:47 AM
  2. Suck it up you Limey Scum.
    By Mega in forum News
    Replies: 4
    Last Post: 09-10-12, 04:45 PM
  3. Bad news time again Limey Scum....
    By Mega in forum News
    Replies: 0
    Last Post: 05-17-12, 11:11 AM
  4. Bad news oh Limey scum....
    By Mega in forum News
    Replies: 0
    Last Post: 08-30-11, 07:25 PM
  5. Not long now Limey scum
    By Mega in forum News
    Replies: 2
    Last Post: 11-03-10, 02:48 AM



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Opinions expressed herein are those of the posters, not those of iTulip, Inc., its owners, or management. All material posted on this board becomes the intellectual property of the poster and iTulip, Inc., and may not be reposted in full on another website without the express written permission of iTulip, Inc. By exception, the original registered iTulip member who authored a post may repost his or her own material on other sites. Permission is hereby granted to repost brief excerpts of material from this forum on other websites provided that attribution and a link to the source is included with the reposted material.

Nothing on this website is intended or should be construed as investment advice. It is intended to be used for informational and entertainment purposes only. We reserve the right to make changes, including change in price, content, description, terms, etc. at any time without notice. By using this board you agree that you understand the risks of trading, and are solely responsible for your own investment and trading decisions. Read full legal disclaimer.

Journalists are not permitted to contact iTulip members through this forum's email and personal messaging services without written permission from iTulip, Inc. Requests for permission may be made via Contact Us.

Objectionable posts may be reported to the board administrators via Contact Us.