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UK

Oil & Gas

Energy Institute urges better dialogue on fracking issue

The energy industry’s professional membership body yesterday lambasted the sector’s inability to provide clear information on fracking, the method of shale gas extraction. And, unable to tolerate the situation any longer, the Energy Institute has published its own guide to fracking, which is one of the most divisive issues surrounding the industry at present. In January, the Scottish government declared an indefinite moratorium on granting planning consent for fracking while further research was carried out.

Oil & Gas

Amec Foster Wheeler wins MOD contract

Amec Foster Wheeler has been awarded a contract by the UK Ministry of Defence’s (MOD) Defence Nuclear Safety Regulator (DNSR) to supply independent regulatory services across their activities. DNSR is part of the MOD’s Defence Safety Authority and is responsible for the regulations of the Defence Nuclear Programme.

Oil & Gas

Public support for fracking ‘falls to new low of one-in-five’

Support for controversial fracking has fallen to a new low, according to an official Government survey. Only a fifth of people (21%) back extracting shale gas for use in the UK, the lowest level of support since the quarterly public attitudes survey by the Department of Energy and Climate Change first quizzed people on the issue in December 2013. Overall 28% of people opposed fracking, with 46% expressing no opinion either way, the survey of 2,118 UK households found. But the level of opposition was higher among people who said they knew about fracking, with 54% of those who know a lot about the process opposing it, compared to 32% backing it.

Opinion

Opinion: Westminster seems to be intent on killing off renewables – why?

I find it impossible to feel anything but raw anger towards the Westminster Conservative Government’s policy on renewables and energy policy in general. Here is a government stating on the one hand that the country has to support the “makers” and export more yet on the other effectively stamping out a globally important growth industry with huge potential. So far, Cameron & Co have scrapped or dramatically reduced support for onshore wind, solar, biomass, the Green Homes scheme, is selling the Green Investment Bank, has done away with the policy of building Zero Carbon Homes, reduced the incentive to move to lower emission vehicles and, of course, decided that the Climate Change Levy, which had been restricted to providers of non-renewable energy to businesses, will be imposed on renewable energy providers as well.

Opinion

Opinion: EU Offshore Directive will underpin unwavering focus on safety

Last month saw a significant moment for this offshore oil & gas industry. What might be considered the single biggest change to affect domestic offshore health, safety and environmental management in many years came into force – the EU Offshore Safety Directive. Following the Deepwater Horizon incident in the Gulf of Mexico in April 2010, the European Commission (EC) refocused attention on the potential for major accidents and, in particular, major environmental accidents, deciding that consistent standards were required for offshore operations across the European Union (EU) – particularly as many other European countries, such as Romania and Cyprus, were at the early stages of offshore development. The initial proposal for an EU Regulation was met by strong opposition from Oil & Gas UK among others – against the threat that Regulation would have swept away our entire legal framework, which is recognised as world-class, used as an example of best practice by countries as far away as Australia.

Other News

Tank of diesel drops ‘£3 in a month’ after pump prices fall

The cost of filling up an average diesel car has dropped by £3 in a month as the average price of diesel at the pumps fell 5p a litre, data shows. The fall - hailed as good news for people setting off on holidays - came as retailers began passing on the savings in the cost of wholesale diesel, which has been below that of petrol since the end of May. At the start of the month diesel was 120.63p, but by the end it had dropped almost 5p to 115.74p, according to the RAC’s Fuel Watch data for July. And on Wednesday July 29 the country saw the first forecourt price flip between diesel and petrol since summer 2001 with diesel at 116.28p, just below the average petrol price of 116.64p, the RAC said.

Other News

Carbon capture alone ‘unlikely to limit global warming’

Physically removing carbon from the atmosphere cannot be relied upon to prevent extreme global warming or save the oceans from acidity, scientists have warned. Carbon capture and enhanced natural “sinks” are simply not feasible methods of limiting warming because of the sheer scale of the challenge, according to one study. Another team found that even aggressive carbon dioxide removal (CDR) policies would take centuries and possibly thousands of years to reverse ocean acidification. In both cases, the experts concluded there was no way of dodging the need for substantial cuts in greenhouse gas emissions.

Other News

Iran’s thirst for energy after nuclear deal draws wind industry

Iran’s quest to rejuvenate its energy industry after decades of sanctions is attracting renewable energy developers eager to plant turbines on windy ridges across the country. Since 2012 the government has pushed renewables as an alternative to the fossil fuels that supply 94 percent of its electricity. Developers such as GI Umweltconsult and turbine suppliers including Nordex SE are preparing to enter the market. While Iran’s renewables industry is concentrated mainly on hydro plants, the government plans to bolster wind as a way of preserving crude oil for export, and feeding the electricity needs of its more than 80 million people. With an ambition to install 5 gigawatts of renewable capacity by 2020, Iran would rank alongside France and the UK as an industry leader.

Health, Safety & Environment

Total fined £1.4million after worker killed in oil refinery explosion

Energy giant Total has been fined £1.4million after a worker was killed in an oil refinery explosion. Contractor Robert Greenacre, 24, was working under a distillation column containing hot crude oil, which was released and caught alight at the huge plant in North Killingholme, North Lincolnshire five years ago. A colleague was able to escape with minor burns but Mr Greenacre died at the scene.

Oil & Gas

Cuadrilla to appeal fracking rejection

Cuadrilla said it plans to appeal a decision by Lancashire County Council to refuse planning consent for two licences for temporary shale gas exploration sites. The energy firm had wanted to frack and test the flow of gas following drilling at up to four exploration wells at a proposed site between Preston and Blackpool. Prior to last month's decision planning officials at Lancashire County Council recommended its approval, subject to a number of conditions being met, but councillors chose to ignore the advice and rejected it due to adverse impacts on landscape and noise.

Other News

Hinkley C nuclear project ‘one of worst deals ever’

A Conservative former energy secretary has insisted the “elephantine” Hinkley C nuclear project is “one of the worst deals ever” for British consumers and industry. Lord Howell of Guildford told peers he would “shed no tears” if the multi-billion pound development in Somerset by French giant EDF Energy was abandoned in favour of smaller nuclear plants at a later date. He warned no reactor of the kind planned for Hinkley C has “ever been completed successfully”.

Renewables/Energy Transition

Cutting solar energy subsidies ‘will reduce household bills’

Solar energy subsidies will be cut under plans set out by Energy Secretary Amber Rudd which she claimed would reduce household bills. The Department of Energy and Climate Change (DECC) is consulting on plans that would see subsidies for some small-scale new solar farms close by 2016. Ms Rudd said the renewable energy industry could not be given a “blank cheque” and the level of subsidies should be reduced because of a fall in the cost of delivering solar power.

Oil & Gas

Oil firms may retain clear-up costs for hard-to-sell North Sea assets

Oil firms trying to sell off ageing North Sea fields are said to be considering shouldering hundreds of millions of dollars in potential dismantling costs in a bid to find buyers. According to reports, the decrease in spending brought on by the oil price decline, has triggered companies to increase efficiencies and sell or shut down assets which are no longer profitable. However despite a number of assets going up for sale in recent months, few deals have been completed.

Other News

Scatsta to reduce staff at airport in Shetland in wake of oil price decline

Shetland’s busy oil airport at Scatsta is set to cut staff by almost a third in response to the offshore industry contracting its North Sea operations in the wake of the oil price decline. Airport operators Serco have confirmed they are looking to reduce their headcount by between 25% and 35% by the end of the year. The move comes after Bristow Helicopters announced it was in consultation with staff over jobs earlier this month.

Oil & Gas

Egdon Resources sees promising results from Wressle-1

Egdon Resources has revealed encouraging results from the pumped test carried out at the Wressle-1 oil and gas discovery in licence PEDL180 in England. The company said assessments carried out over the Penistone flags zone 3A showed a production rate of more than 180 barrels of oil equivalent per day. Previous initial testing at the Ashover Grit, the Wingfield Flags and the Pensitone Flags had been carried out but due to a problem with downhole testing equipment, test operations were switched to focus on the shallower Penistone region.

Oil & Gas

Centrica creates job boost with £16million gas project investment

Centrica said up to 80 jobs could be created in the UKCS as the company unveiled a new project aimed at boosting gas production. The energy giant plans to tap into new reserves in the North Morecambe field, with work beginning this month. The move is set to take investment in the region past the £100million mark and unlock as much as 8.8billion cubic feet in new gas reserves.

Other News

‘Smart’ carbon positive energy house built in UK

The UK’s first “smart” carbon positive energy house, which can export more power to the grid than it uses, has been constructed, experts said. The low-cost three-bedroom family home, designed by experts led by Cardiff University, integrates technology to reduce energy demand and generate and store renewable energy. The property near Bridgend, Wales, has been built to be highly efficient, with high insulation to reduce air leakage, structural insulated panels, insulated render on the outside and air heating systems that rely on the sun.

Other News

‘Green’ policies add £60 to energy bills, says think-tank

The Government’s “green” policies have added around £60 to the average consumer energy bill in the last five years, a report has suggested. Energy company profits have added £70 to rising bills, and accounted for around £77 of average household dual fuel costs in 2014, while energy and climate policy costs accounted for £89, the study from think-tank Policy Exchange said. The report called on ministers to maximise efforts to improve household energy efficiency and to focus carbon-cutting efforts on mature technologies such as onshore wind to tackle climate change at least cost to the consumer.

Other News

Gaelectric compressed air project to get £6.5million grant

The UK’s first compressed air energy storage project is to be awarded almost 6.5 million euro (£4.6m) by the European Union. It will hold air in specially engineered salt caverns under high pressure on Northern Ireland’s east coast before releasing it to drive turbines and create power for the grid. The money will pay for environmental impact assessments, planning and design, the Gaelectric firm behind the innovative scheme said. The system could generate up to 330 megawatts of electricity - enough to sustain thousands of homes - for up to six hours and the EU said it will contribute to energy security in the UK and Ireland.

Renewables/Energy Transition

Briggs Energy strikes eight year deal with DONG Energy

Briggs Marine has won an eight year contract from DONG Energy for contingency and repair of export and array cables for offshore windfarms in the UK and Northern Europe. The deal will cover nine sites in Britain, five in Denmark and four in Germany. Briggs has formed a strong relationship with DONG Energy since last year when it provided interim repair capability for their UK windfarms.

Other News

Energy costs: British Gas to lower household supplies price by 5%

Average annual bills for British Gas customers are set to fall by £35 after the company announced a 5% cut for prices for household gas. The move, which is expected to be followed by the other “Big Six” major energy firms, will come in ahead of the winter and reflects lower costs, according to British Gas managing director Mark Hodges. It comes as National Grid warned it would have to spend more money on putting measures in place to keep the lights on this winter - adding an average extra 50p onto consumer bills - in the face of a worsening energy crunch. The closure of some power stations would have left a spare capacity of just 1.2%, and the company is paying mothballed plants to be on standby and some industries to be ready to power down if needed at times of peak demand.

Oil & Gas

INEOS boss insists Government ‘not against fracking’

The Scottish Government has given assurances that it is “not against fracking”, according to the boss of a firm which runs Scotland’s largest petrochemical plant. Jim Ratcliffe, the chief executive and chairman of Ineos, which runs the Grangemouth plant, has suggested an onshore shale gas industry could potentially be set up in Scotland within a few years, despite an indefinite moratorium on granting planning consent for fracking - the method of gas extraction. The firm has ambitions to establish a large-scale shale gas industry, having acquired fracking exploration licences across 700 square miles of central Scotland.

Oil & Gas

UKOOG backs shale gas report

Onshore oil and gas body UKOOG (United Kingdom Onshore Oil and Gas) has welcomed a report from a task force on Shale Gas which has assessed the impact on local environment. It comes after Lord Chris Smith admitted his report on the local and health impacts of the industry revealed it still faces an "uphill struggle" for public acceptability. A number of recommendations have been made around practices used by companies in the UK including seismic modelling, full chemical disclosure and the use of green completions at production.

Oil & Gas

UK fracking report: Still a long way to go for public acceptability

Fracking faces an “uphill struggle” for public acceptability, Lord Chris Smith has admitted as his shale gas task force published a report on the local environment and health impacts of the industry. The task force said shale gas extraction could be safe for the local environment and people’s health in the UK if provisions were in place and regulated to prevent larger earthquakes, water contamination, gas wells leaking and methane pollution. The second interim report by the task force called for full disclosure to the public of the chemicals used in the process, to reassure people it is safe, and independent monitoring and regulation to make sure wells do not leak to prevent water contamination.