Britain Oil Review: New Regulator Needed to Lift Output

Marinelink.com
Monday, February 24, 2014

By Karolin Schaps, Reuters
 

Britain urgently needs its oil and gas companies to pay for a new regulatory body to encourage industry collaboration and counter plunging North Sea production rates, a government review, the first since the mid-1990s, said on Monday.
 

Britain's oil and gas output has fallen about two thirds since its peak at the turn of the century, but reforms could lead to 200 billion pounds ($330 billion) worth of extra oil and gas being extracted, the government said.
 

The North Sea is thought to contain billions of barrels of hard-to-reach oil but with many platforms and pipelines coming to the end of their working lives, time is fast running out to get at them. The review's task was outlining how to make that easier.
 

About 99 percent of oil and 60 percent of gas production from offshore Britain is expected to come from Scottish waters until 2040.
The first strategy assessment of the country's oil and gas potential in more than 20 years was published on the same day as Prime Minister David Cameron holds his first full cabinet meeting in Scotland, aimed at persuading Scots - who vote on secession on Sept. 18 - to stay in Britain.
 

The oil and gas industry, whose major North Sea operators include BP, Statoil and Shell, is expected to foot the bill for the new regulator which the government said will be set up immediately.
 

"I believe industry will have to pay, but in return should be granted appropriate service level agreements," said Sir Ian Wood, author of the report and former chairman of oil services company Wood Group, without providing figures.
Government revenues from North Sea production fell more than 40 percent to 4.7 billion pounds in 2012-13, underlining the sector's importance to Britain's economic recovery.
 

The new regulator will block any major investments that do not sufficiently focus on extracting maximum potential from North Sea fields, a move which could result in some operators losing their licences, Wood said.
 

Wood, whose report estimates that about 24 billion barrels of oil equivalent could still be buried beneath the UK part of the North Sea, also recommended the regulator should enforce rules for companies to share exploration data more quickly.
 

"I fully back Sir Ian Wood's recommendations and we will start implementing them immediately," said Britain's Energy and Climate Change Secretary Ed Davey in a statement.
 

A focus on more drilling for oil and gas in more remote areas could benefit companies who specialise in that area such as Seadrill, Noble or Rowan, experts in oil and gas exploration work.
 

"We strongly welcome the proposal for a new arm's length regulator with additional powers and resources...The report is a game changer," said Malcolm Webb, chief executive of Oil & Gas UK, Britain's fossil fuel industry lobby group.

 

(Additional reporting by Stephen Eisenhammer and Sarah Young; Editing by Louise Ireland)


 

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

Offshore

Rosneft says Exxon Still Continues to Work With it in Arctic

Russia's biggest oil producer Rosneft said on Saturday that Exxon Mobil was still continuing exploration drilling at their joint project in the Arctic Kara Sea.

EMGS - New Contract in the Norwegian Sea

Electromagnetic Geoservices ASA (EMGS) announced an agreement from Statoil Petroleum AS for the Norwegian Sea. EMGS has now received a new contract from another oil and gas company worth USD 1.

Deep Sea Supply takes Delivery of 'Sea Triumph'

The Deep Sea Supply  took delivery of the newbuilding Platform Supply Vessel 'Sea Triumph'  on Thursday 18 September.  The vessels 'Sea Triumph' is a STX 05-L

Energy

Rosneft says Exxon Still Continues to Work With it in Arctic

Russia's biggest oil producer Rosneft said on Saturday that Exxon Mobil was still continuing exploration drilling at their joint project in the Arctic Kara Sea.

EMGS - New Contract in the Norwegian Sea

Electromagnetic Geoservices ASA (EMGS) announced an agreement from Statoil Petroleum AS for the Norwegian Sea. EMGS has now received a new contract from another oil and gas company worth USD 1.

Deep Sea Supply takes Delivery of 'Sea Triumph'

The Deep Sea Supply  took delivery of the newbuilding Platform Supply Vessel 'Sea Triumph'  on Thursday 18 September.  The vessels 'Sea Triumph' is a STX 05-L

Seismic Vessel Tech

EMGS - New Contract in the Norwegian Sea

Electromagnetic Geoservices ASA (EMGS) announced an agreement from Statoil Petroleum AS for the Norwegian Sea. EMGS has now received a new contract from another oil and gas company worth USD 1.

CGG Nets Quartet of BroadSeis-BroadSource Marine Contracts

French Firm CGG announced today that it has been awarded contracts for the 3D seismic acquisition of four major surveys using its BroadSeisTM with BroadSourceTM, marine broadband technology.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Port Authority Salvage Ship Electronics Ship Simulators
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: 0.3390 sec (3 req/sec)