Production Cost of North Sea Oil and Gas Doubles

Tuesday, February 13, 2007
A chronic shortage of rigs and workers has doubled the cost of producing oil and gas in the North Sea, threatening to make the UK’s domestic oil industry uncompetitive, warned UKOOA, the association of North Sea offshore operators, according to Times Online.

Signs that costs are crimping investment emerge in the association’s survey of North Sea activity.

Further evidence of the dramatic worldwide oil industry cost escalation emerged in a new index showing a 53 per cent increase in project costs over just two years. The Upstream Capital Costs Index, launched by IHC and Cambridge Energy Research Associates (Cera), climbed 13 per cent in the six months to the end of October because of soaring inflation in hiring rigs, shipyard fabrication and labour. Cera predicted that confidence in new oil services capacity would remain if oil stayed above $55 per barrel. Britain’s oil and gas output fell 9 per cent last year to 2.9 million barrels per day, and the decline is expected to steepen. The North Sea operators association has cut its output projection by an average of 250,000 barrels per day, owing to project delays, increased maintenance and poorer well performance. Source: Times Online

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Teekay Petrojarl Contracts Damen for FPSO Upgrade

Damen Shiprepair Rotterdam (DSR), part of Damen Shiprepair & Conversion (DSC), has been awarded an EPC contract by Petrojarl I LLC for the upgrade of its FPSO Petrojarl I.

DNV GL Targets Safer Approach to Subsea Lifting

The completion of a joint industry project (JIP) to improve existing standards and regulations around subsea lifting operations has resulted in a new recommended practice (RP).

Polarcus Awarded 3D Project Off West Africa

Polarcus Limited has signed a letter of intent with Perenco Oil & Gas Gabon S.A. for a 3D marine seismic acquisition project offshore West Africa.   The project,

Tanker Trends

EXMAR Orders Second FLNG from Wison

EXMAR NV has placed an order for a second Floating LNG Liquefaction Unit (FLNG) at Wison Offshore & Marine. Under the agreement, Wison will be responsible for the turnkey engineering,

Video: Crewman Medevaced from Oil Tanker

The U.S. Coast Guard (USCG) medevaced a Filipino crewmember from a tanker 23 miles south of Southwest Pass, Sunday.   Watchstanders with Coast Guard Sector New

Shipbuilding: NAT Finalizes Deal for Two New Tankers

On December 9, 2014, Nordic American Tankers Ltd. announced that preliminary contracts had been entered into with a South Korean shipyard, for the construction

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1096 sec (9 req/sec)