Maybe.
Posted on 12/19/2014 12:13:59 PM PST by Lorianne
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."
"This has happened before, and the industry adapts, but the adaptation is one of slashing people, slashing projects and reducing costs wherever possible, and that's painful for our staff, painful for companies and painful for the country.
"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 the coming weeks. Budgets for 2015 are being cut by everyone."
Mr Allan said many of the job cuts across the industry would not have been publicly announced. Oil workers are often employed as contractors, which are easier for employers to cut.
(Excerpt) Read more at pbs.org ...
:: North Sea oil industry ‘close to collapse’ ::
Has anyone told the Norwegians (Statoil, NorskHydro & Troll), yet?
The Scots will learn to like the English for a bit.
This happens in Texas every 10 to 20 years. Grow a pair.
So what? Yes, the industry will have to ‘adjust’ - while the rest of the economy will have more money to spend on other things. Cheap energy is a net positive.
...so to all those that make billions from oil, cry me a river...the only ones that I have concern for are retirees that have a lot in oil stocks.
I don’t know much about those companies ... but here is an WSJ article which implies they are being hurt too
Oil’s Slump Threatens Norway’s Economy
http://www.wsj.com/articles/oils-slump-threatens-norways-economy-1417721313
It is good to be on the right side of the curve for a change.
The benefits to our economy are vast.
Kind of.
The only reason there has not been inflation in the USA with all of the Fed’s money printing is the current account deficit was shrinking (almost going positive) because energy is such a large component of the trade balance.
With decreasing domestic energy production, it will shift rapidly and you’ll get inflation rather quickly.
It is good to be on the right side of the curve for a change.
The benefits to our economy are vast.
Very true. One point to ponder though, ... this is going to hit them quite a bit harder than us, due to the currency exchange currently working in our favor. I can't speak for UK oil industry, but for here in this country, at least big oil factors in a bust every 10-20 years ago like you said.
Am really looking forward to seeing UK poll numbers in a few months about how well they like being in the EU.
Because so much of our discoveries are gas rather than oil, the world chemical and plastics industries have pulled up stakes elsewhere and are headed here as fast as they can.
The Saudis are borrowing a page from John D. Rockefeller’s playbook. They are flooding the market with cheap oil to put the North American competition out of business. Once they go under they can raise the prices again. We should respond with an import tax on oil other from Canada until prices rise to a level that supports domestic production.
Maybe.
Agreed.
Oh, I would have LOVED to watch Scotland actually achieve Independence with this happening.
wah wah wah
Seriously, isn’t the point of capitalism supply and demand?
BAck in the 80s I lived in MT near the WY border.
Saw quite a few pickups with stickers that read:
“Please God, let there be another oil boom. This time I promise not to piss it all away.”
I suspect the Saudi moves are aimed a lot more at defunding Iran than affecting American production.
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