Industrialized Cyclist Notepad


North Sea

Long peaked, declining rapidly and getting really expensive.

The sharp decline in production of oil and gas from under British waters is “worrying” industry leaders.

Trade body Oil and Gas UK says there is record investment this year of £13.5bn.

But its annual report on the industry’s economic impact highlights the sharp fall in output of 19% during 2011 and 14% in 2012.

It says the industry’s latest estimates of the continuing decline suggest a further fall of at least 8.5% during this year, with no recovery next year.

[...]

Because of challenging geology and unplanned shutdowns on offshore platforms, the unit cost per barrel for extracting oil from British waters, known as the UK Continental Shelf (UKCS), has gone up four-fold over the past decade.

via BBC News – 'Worrying' decline in oil and gas production.



WTI catches back up to Brent
July 21, 2013, 00:23
Filed under: Uncategorized | Tags: , , , , , , ,

West Texas Intermediate crude became more expensive than Brent for the first time in almost three years as pipeline and rail shipments helped clear a bottleneck that reduced the price of the U.S. benchmark.

WTI hadn’t been higher than Brent since Aug. 17, 2010. The move was in intraday trading. WTI averaged $17.47 less than Brent in 2012 and traded as much as $23.44 lower than its European counterpart Feb. 8.

Improved pipeline networks and the use of rail links are helping to ease the North American oil glut created by rising production of crude from shale formations. WTI has jumped 18 percent this year, while Brent has decreased 2.5 percent as North Sea supplies stabilized after maintenance.

via WTI Crude Exceeds Brent for First Time in Almost Three Years – Bloomberg.



Falkland Islands Oil

From oilvoice.com: http://www.oilvoice.com/n/Falkland_Islands_The_New_North_Sea/614e4d43b.aspx

The prospect of the Falkland Islands developing into a major oil producing region has captured the imagination of geologists and investors alike for decades. For many, the area has significant potential as a new ‘North Sea’, bringing opportunities for oil and services companies for years to come. The exploration area surrounding the Falklands to which the UK has a territorial claim is some fifty percent larger than the UK’s portion of the North Sea. In fact, despite being thousands of miles apart there are many similarities between the two. Environmental conditions and water depth are comparable to those west of the Shetland Islands, whilst in terms of geology the basins of the Falkland Islands possess structures similar to those found in the North Sea. The exploration area itself is separated into the geologically distinct North Basin, where the Sea Lion discovery was made, and the South Basin where fellow explorers Falkland Oil & Gas and Borders and Southern Petroleum intend to embark on their own campaign from the end of 2011 having secured an additional rig.

Despite the recent success, there are still those who doubt the Falkland Islands will ever see large scale oil production.

Falklandsoilprospects



US oil consumption and oil price in Brent

Via Stuart Staniford’s Early Warning:

http://earlywarn.blogspot.com/2012/04/us-oil-consumption-and-oil-prices.html

However, it’s also worth noting that the price required to make consumption decline has increased over time. In 2006-2007, prices of around $70 were enough to make oil consumption flatten and then decline. However, in late 2009 and 2010, similar prices obtained while consumption continued to rise. It took the rise to over $100 in spring 2011 to get consumption to start to decline again.



Total would like you to forget that it has two gas leaks spewing right now

Maybe if they only talk about one of them, the public will think it’s the only one…

The leak at its Obite natural gas site has forced the company to evacuate those nearby and led to daily monitoring of air and water surrounding the plant in Nigeria’s Rivers state. However, Total’s Nigerian subsidiary hasn’t made any public statement about the leak since it likely began following an incident March 20, though the company has given near-daily updates about a similar leak at a plant off the United Kingdom in the North Sea.

via The Oil Drum | Drumbeat: April 14, 2012.



Total spewage
April 6, 2012, 08:02
Filed under: Uncategorized | Tags: , , , , , , , ,

I don’t think he was supposed to say that…

PARIS (Dow Jones)–Drilling relief wells near the Elgin oil rig in the North Sea to stop a natural gas leak may take more than six months, French oil major Total SA (TOT), which owns the rig, said Friday.

“The time taken to drill wells in Elgin surpassed six months so it is right to expect a similar timeframe (for the relief wells operation),” Eric Casse, Total’s Drilling & Well Operations Manager for Europe, the Americas and Central Asia said in a video posted by Total on its website.

via Total: Drilling Relief Well In Elgin May Take More Than 6 Mos – WSJ.com.



Elgin gas leak

Another monster from the deep.

A cloud of gas was reported to be surrounding the platform, which is located 150 miles (240km) off Aberdeen.

Workers from a second platform and drilling rig have been removed.

Shell has moved 120 non-essential staff from the Shearwater platform and Hans Deul drilling rig, about four miles from the Elgin, because of the drifting gas.

via BBC News – Elgin platform gas leak: Exclusion zone in place.



UK Oil production quietly plummeting

For any modern nation, a 22% decline in oil production would be significant over the course of a decade. A 22% drop over a mere 12 months ought to be front-page news, yet this radical decline has passed relatively unnoticed.

via UK Oil: Plummeting production vs media inattention | Energy Bulletin.



Sometimes you have to go to Canada to find people who understand the concept of depletion

Like this Eric Reguly character of the Globe and Mail:

Why hasn’t the high price triggered a production surge? The biggie, it seems, is that the non-OPEC countries are simply not up to the job. As Barclays points out, non-OPEC supply last year landed at a full one million barrels a day less than forecast by the International Energy Agency. The North Sea (whose production is shared by Britain and Norway) continued its terminal decline. Brazil and Azerbaijan were also the scenes of production disappointments.

Meanwhile, OPEC, dominated by Saudi Arabia, is sweating exceedingly hard. OPEC production volumes are at three-year highs, to the point that the cartel has only about 1.6 million barrels a day of spare capacity, and still prices are climbing.

via CTV News | All the signs point to a falling oil price – except supply.



Interesting math from Reuters as Brent tops 120

Crude oil output from the North Sea, home of the global Brent benchmark, is set to fall in March for a third month due to maintenance work and natural aging of oilfields there.

Supply will average 2.18 million barrels per day in March, down 1.4 percent from 2.12 million bpd the previous month, data compiled by Reuters showed on Tuesday.

via Brent tops $120 on Iran, North Sea, Greece | Reuters.

This report was the product of at least four reporters and two editors.




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