Oil & Gas & Energy sectors in the news - Implications for the UK
The press is carrying a number of stories covering the oil and gas and energy sectors which makes for interesting reading.
A positive article in Supply Management ( http://www.supplymanagement.com/news/2014/oil-and-gas-supply-chain-contributes-ps35-billion-to-uk-economy ) covers an EY report detailing the benefit to the UK economy of North Sea oil and gas production. A number of interesting points:
1) Peak production was 1999 for oil and 2000 for gas and by 2012 production was down by a third in both commodities; however, a contribution of £35Bn to the UK economy is not an insignificant amount.
2) This financial amount is clearly of great interest to both UK and Scottish governments with the Independence vote only a few months away, as the economic viability of an independent Scotland has the potential to be a deciding factor in the vote.
3) Only a short mention is given to shale gas. The exploitation of shale gas, whilst contentious, has much less logistic infrastructure or complexity than deep sea extraction and transportation.
The Daily Telegraph carries an article covering oil and gas and the present dispute between Ukraine and Russia ( http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/10791167/BP-and-Shell-exposed-as-US-prepares-first-warning-shot-against-Russias-oil-and-gas-industry.html ). This article makes for interesting reading and provides an insight as to how uncomfortable the major UK energy suppliers must be feeling at present. Whilst BP and Shell are identified in the title the provision of gas through UK companies to domestic consumers is clearly at risk.
The size of the Russian production is of particular note and of course the option for the Russian companies to switch sales to China, over time, should be sounding alarm bells for energy security in western Europe. An alternative fuel/ energy strategy is clearly needed, and quickly, if Europe is not to be compromised.
Continuing the theme of oil and gas, the Daily Telegraph also covers the potential merger of two oil exploration companies ( http://www.telegraph.co.uk/finance/10791726/Ophir-makes-secret-bid-for-Premier-Oil.html ). The size of the combined company would be significant and the gateway to Antarctica (via current operations off the Falkland Islands) is of strategic importance.
A positive article in Supply Management ( http://www.supplymanagement.com/news/2014/oil-and-gas-supply-chain-contributes-ps35-billion-to-uk-economy ) covers an EY report detailing the benefit to the UK economy of North Sea oil and gas production. A number of interesting points:
1) Peak production was 1999 for oil and 2000 for gas and by 2012 production was down by a third in both commodities; however, a contribution of £35Bn to the UK economy is not an insignificant amount.
2) This financial amount is clearly of great interest to both UK and Scottish governments with the Independence vote only a few months away, as the economic viability of an independent Scotland has the potential to be a deciding factor in the vote.
3) Only a short mention is given to shale gas. The exploitation of shale gas, whilst contentious, has much less logistic infrastructure or complexity than deep sea extraction and transportation.
The Daily Telegraph carries an article covering oil and gas and the present dispute between Ukraine and Russia ( http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/10791167/BP-and-Shell-exposed-as-US-prepares-first-warning-shot-against-Russias-oil-and-gas-industry.html ). This article makes for interesting reading and provides an insight as to how uncomfortable the major UK energy suppliers must be feeling at present. Whilst BP and Shell are identified in the title the provision of gas through UK companies to domestic consumers is clearly at risk.
The size of the Russian production is of particular note and of course the option for the Russian companies to switch sales to China, over time, should be sounding alarm bells for energy security in western Europe. An alternative fuel/ energy strategy is clearly needed, and quickly, if Europe is not to be compromised.
Continuing the theme of oil and gas, the Daily Telegraph also covers the potential merger of two oil exploration companies ( http://www.telegraph.co.uk/finance/10791726/Ophir-makes-secret-bid-for-Premier-Oil.html ). The size of the combined company would be significant and the gateway to Antarctica (via current operations off the Falkland Islands) is of strategic importance.
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