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

Offshore

Med Urals Market Awaits Short May Loading Schedule

Activity in the Russian Urals crude market froze on Tuesday as traders said they were awaiting the first loading dates for May for signs of how much supplies from

BOEM Proposes GoM Oil and Gas Lease Sale

As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, Bureau of Ocean Energy Management (BOEM) Director Tommy P.

North Sea Traders Eye VLCCs to Asia, Libya Caps

North Sea Forties crude differentials firmed on Tuesday as traders eyed two potential VLCC shipments to Asia, though gains were capped as the first cargo of Libyan

Tanker Trends

Scorpio Tankers' Latest Sale & Purchase Deals

Scorpio Tankers says it recorded a gain of US$51-million from the sale of the 7 VLCC newbuilding contracts announced earlier. In March 2014, the Company received

OSC Plans Fleet Expansion through 2018

State-owned Oman Shipping Company SAOC (OSC) is projecting to expand its current fleet of 43 ships to 50 by 2018, the Oman Daily Observer reported. According to the report,

Med Urals Market Awaits Short May Loading Schedule

Activity in the Russian Urals crude market froze on Tuesday as traders said they were awaiting the first loading dates for May for signs of how much supplies from

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.0907 sec (11 req/sec)