Our national broadcaster ran a headline recently that said “UK car manufacturing hits 10-year high in 2015”. Other outlets said similar things and one included some comment about the fact that Jaguar Land Rover was now outperforming Nissan.
The announcement last week that £504million of public sector money will be invested in support of the Aberdeen City Region Deal is very welcome news for the north-east of Scotland.
The oil price collapse is dominating the current news cycle, with Brent dropping below $28 a barrel for the first time in over 12 years. This continuous dramatic fall spanning 18 months has raised concerns over the future development of many offshore oil & gas fields.
Much of this issue is given over to subsea oil & gas and the crisis that it faces. As the big subsea contractors watch their backlogs shrink and doubtless cringe at the thought of taking delivery of the next seagoing “Swiss Army Knife” ordered during the boom and as firms further down the food chain wonder if they’ll still be in business three . . . six months from now, necessity becomes the mother of invention.
I got a call from a London TV crew last week. They wanted to know where the best shots were to capture the essence of a “ghost town” called Aberdeen.
In a law case from 1884 − Regina v. Dudley and Stephens − the accused were found guilty of murdering their ship mate Richard Parker in a lifeboat. It was decided by five judges in the Royal Courts of Justice in London, “that one must not kill one`s shipmate in order to eat them no matter how hungry one might be”. It may come as a surprise that right up until 1884 stories of cannibalism in lifeboats were not uncommon. The drawing of lots was often used to decide matters − noble sacrifice or murder, either way there was a level of consent to the unfortunates’ departure. By now many will have seen the feature film “In the Heart of the Sea” about the fate of the survivors of the Essex, a Nantucket whaling ship lost in 1820.
There is an army of oil analysts out there, constantly predicting that a day of reckoning is coming, but wisely omitting details about which day that will be. There are the broken-clock forecasters, always predicting an oil price collapse, and anxious to take credit when right – once a decade or so.
Iran is one of the most significant producers of crude oil and natural gas in the world. According to the OFAC Annual Statistical Bulletin 2015, Iran has proven crude oil deposits equating to 157,530 million barrels and natural gas reserves of 34,020 billion cubic/meters. While subject to comprehensive international sanctions, the Iranian natural resources sector had severely limited access to international markets both for export and inward investment.
The oil and gas crisis has left thousands of people out of work. Allan Gardner, financial services director at Aberdeen law firm Aberdein Considine, highlights some of the financial implications of losing your job.
Despite the best efforts of some politicians, it’s obvious to everyone working in the UK’s Oil and Gas sector that we have seen better days. We are in a crisis and when adversity strikes we will be measured on how we respond. We can duck the issues by making cuts and laying off employees or we can challenge and push the boundaries as the current climate potentially becomes the norm.
Since the falling price of oil started to bite in the north-east, it has been clear that the energy sector needs urgent support to protect the tens of thousands of jobs that are at risk.
Saudi Arabia may not have the grip over oil prices that it once did, but it still knows how the prime the market. Earlier this month, Saudi’s deputy crown prince, Muhammad bin Salman, floated the idea to The Economist of a stock offering for Saudi Aramco, the state company that controls Saudi Arabia’s massive oil reserves.
A North Sea skit as imagined by Professors Alex Russell and Peter Strachan of Robert Gordon University on behalf of the North Sea oil industry.
At a time when many North Sea Oil workers are losing their jobs, ludicrous suggestions that the sector should be wound down and those that work offshore can be left to find alternative employment as lumberjacks or whatever are both ill-advised and insensitive.
As an economist, I find the Scottish Greens' suggestion that we could shut down the North Sea oil industry and move to industries such as sustainable forestry rather misguided.
Our plans are for a just transition away from oil and gas to secure future jobs and energy supply.
Dear Mr Harvie,
The price has been coming down for several months because production from Saudi Arabia is strong, from Iraq it’s strong, from Russia it’s quite strong. From the US there’s been a little bit of a fall but not very much. Market makers have been anticipating Iran sanctions to be lifted, but did not know when until quite recently.
The lifting of sanctions on Iran is good news for Scottish exporters and oil and gas service companies, but a legal expert has warned that with a US trade embargo still in place, Western banks remain reluctant to support Iranian related businesses.
There is quite a difference between EU sanctions lifting on implementation day than in the US.
With the oil price hovering at $30/bbl, it is unsurprising that some are claiming that the North Sea is dead, however they could not be further from the truth.
As oil prices continue to erode margins throughout the industry, the offshore sector tightens its focus on efficiency and cost reduction.
Prime Ministers Questions this week may have been one of the most frustrating sessions ever witnessed by myself and others with ties to the North Sea oil and gas industry. Even when questioned and criticised by MPs in his own party, the Prime Minister has shown a complete disdain and disrespect for an industry which has been politely and urgently asking for his help and the assistance of his government, in coalition or otherwise, for well over a year now.
As an industry we are going through a tough time – and all indications are pointing towards it staying that way. With the value of our product having plummeted to just over $30 a barrel and respected commentators suggesting it’s going to be lower for longer than we might hope, the fear is that it may get worse before it gets better as globally some $400 billion has been cut from E&P budgets.
In the first 7 days of 2016, the S&P GSCI Crude Oil Excess Return lost 17.8%, making it the worst start for oil in history. Now the index has recorded a new maximum drawdown of 92.8% since its peak on July 3, 2008.