Posted on 12/18/2014 6:24:01 AM PST by Oldeconomybuyer
The UK's oil industry is in "crisis" as prices drop, a senior industry leader has told the BBC.
Oil companies and service providers are cutting staff and investment to save money.
Robin Allan, chairman of the independent explorers' association Brindex, told the BBC that the industry was "close to collapse".
Almost no new projects in the North Sea are profitable with oil below $60 a barrel, he claims.
"It's almost impossible to make money at these oil prices", Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. "It's a huge crisis."
"It's close to collapse. In terms of new investments - there will be none, everyone is retreating, people are being laid off at most companies this week and in the coming weeks. Budgets for 2015 are being cut by everyone."
(Excerpt) Read more at bbc.com ...
I wonder how this will hit the Scandinavian socialist countries that are so dependent on oil revenue...
Well, Scandinavia could always get a boost to their economies by encouraging more muzzies to immigrate. /sarc
Short term worry, IMHO. I heard that there’s roughly 600,000 barrels per day excess supply, on a global demand of 91 million. Not many projects have to come offline for prices to rise. Oil prices are clearly inelastic—planes gotta fly, houses gotta be heated.
I don't suppose there's any thought of supplying motorists, homes, and factories, in the UK and Ireland with cheaper energy .... or lowering road taxes. O well, it's a subsidized industry anyway, so one supposes throwing a few thousand more yobbos onto the dole really doesn't matter.
Lousy capitalism...putting profits before people again. Clearly nationalization of the oil industry is required so we don't have to fire the workers just because prices drop. /s
It appears Scotland made the right call then in the independence vote...
Indeed.
Apparently Scotland dodged that bullet. :)
Sorry. Didn’t read all the way down before posting.
That is correct, but there is a price high enough at which oil becomes more elastic, but that price is at least $100/bbl.
CEO says Exxon Mobil can be “successful” with $40 oil
http://www.freerepublic.com/focus/news/3233422/posts
December 3, 2014
I agree. THere’s an inelastic portion to the oil demand, and a more elastic portion (like “Gas is five bucks a gallon, should I take a driving vacation”) part.
I remember noting that oil went from $140 to (briefly) $30 per barrel during the 2008-9 period, while demand dropped about 4%, from 84 million barrels per day to 81 million.
In addition to daily drilling supply, the market is complicated by lots of storage—tankers, for example—so response to supply/demand balance isn’t immediate. And then, there’s the fact that production in place will continue to produce for a while at marginal cost to avoid shutting in costs.
Go America! Drill, baby, drill. Frack, baby, frack.
Gotta put money away for a rainy day and apparently it is pouring.
UK and the Scandinavian countries are to busy letting the muzzies rape their women and children to care....the snot nosed a$$wipes will be blaming the US in their snarky way....screw em!
North Sea oil has been a mixed blessing.
On a positive note it has spurred economic development.
On a negative note the Middle East oil influence has been a big driver in forcing the North Sea countries to open their doors to Islamic immigration and fueled the welfare state Dole system that allows these immigrants to avoid assimilation, radicalize and organize
Should make things interesting
But in Canada...
Exxon and ConocoPhillips make record-breaking bid for offshore exploration rights
http://www.freerepublic.com/focus/f-news/3238548/posts
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