Norwegian energy giant Equinor has announced a £2.5 billion package of measures to help strengthen its financial position during the coronavirus outbreak.
Significant progress in cost reduction in the oil and gas sector is likely to bottom out this year, according to a new report on the performance of supermajors.
Households’ annual energy, home and motor insurance costs have jumped by nearly £200 over the last year, according to a website.
North-east company Eland Oil and Gas said yesterday it had reduced first half losses after operational cost-cutting and exchange rate gains.
Millions of vulnerable households could see their gas and electricity bills slashed under plans expected to be unveiled on Thursday in a long-awaited report into Britain’s energy sector. The Competition and Markets Authority (CMA) will publish its “provisional decision on remedies” after a two-year investigation amid reports that it is likely to set a price cap for low income and vulnerable customers who have pre-payment meters - around 16% of households.
Many fuel retailers are expected to cut the price of petrol to £1 a litre in time for the Christmas getaway. The RAC believes the tumbling oil price will lead to a 3p drop for petrol and 5p for diesel. This would take average prices to around 103p for petrol and 104p for diesel, but experts predict prices will be even lower at many forecourts.
A new drive to reduce costs in the North Sea oil and gas industry is expected to unlock up to £1billion in additional revenue through improved production efficiency and cost savings.
Aggreko said today its gains from petrochemical and refining customers since July 1 had nearly cancelled out an adverse impact from weakness in oil and gas. The Scottish temporary power firm added its “resilience” against a challenging market backdrop allowed it to maintain guidance for 2015 profits of £250-£270million, down from £289million on revenue of £1.58billion last year. Chief executive Chris Weston said: “Whilst we are at an early stage in delivering the specific actions identified at our business review in August, I am encouraged with the progress we are making.”
Petrol prices have fallen for a fourth consecutive month, according to new data. The average price of unleaded at the end of October was 107.8p, compared to 109.5p at the start of the month, the RAC Fuel Watch found. This is equivalent to a saving of 90p on the cost of filling up an average 55-litre family car.
EMGS said it will be implementing further reductions in a bid to streamline its costs. The company revealed last month it had reduced its headcount by 20% as well as reducing its fleet down to three vessels. EMGS said it already identified and implemented “comprehensive” cost reductions on terms and conditions for sub-contractors and in its staffing levels.
A KPMG audit of UK oil and gas industry contracts has revealed widespread overbilling at the same time as firms are trying to slash costs. The professional services firm said 70% of the 10,000 deals it looked at were not properly complied with, leading to regular overcharging. KPMG put the cost of unnecessary spending at between 1% and 5% of “high-risk” investments, meaning a significant level of unnecessary spending on a supply chain worth up to £35billion a year.
Petroleum Geo-Services (PGS) has cold-stacked one of its survey vessels in a bid to reduce costs. The company said the Ramform Viking had been scheduled for a yard stay and classing in the first quarter of next year.
A wide-ranging review of the high cost of electricity in the north and north-east will be carried out by the UK Government following a campaign by Energy Voice's sister publication, the Press and Journal. Scottish Secretary David Mundell revealed last night that there "will be an opportunity to change things" over the coming months. Families in the Highlands and islands, Grampian and Tayside currently pay the highest power bills in the UK because of a regional system for distribution costs.