Oil Firms Opt for Stability, Urge Scotland to Stay in UK

MarineLink.com
Thursday, March 06, 2014

Reuters - Royal Dutch Shell has become the second energy heavyweight to urge Scotland to stay in the United Kingdom as the campaign for Scottish independence battles mounting opposition from businesses.

Shell is a key player in the North Sea oil and gas fields off Scotland and its Chief Executive Ben van Beurden said a vote for independence on Sept. 18 would mean greater uncertainty for the energy industry.

Last month, the boss of BP warned Scottish independence could cause "uncertainties" for his company.

Other oil companies in the North Sea on Thursday stressed the importance of predictability for their operations, joining a growing number of financial services companies voicing concerns about the impact of independence but avoiding political comment.

Another of Scotland's largest companies Aggreko, a provider of temporary power generators which has its headquarters in Glasgow, joined the chorus on Thursday.

It said independence would likely add significantly to its administration costs as its UK operations would have to be split into two trading entities.

Opinion polls have the independence movement trailing with only about one third of voter support but the gap in the polls has narrowed this year as the debate gathers pace.

Van Beurden said he valued the continuity and stability that the UK offered, arguing for its continued inclusion of Scotland and membership of the European Union.

"We'd like to see Scotland remain part of the United Kingdom," Van Beurden told a company event in London on Wednesday evening as reported by the BBC.

"We're used to operating in uncertain political and economic environments. But, given a choice, we want to know as accurately as possible what investment conditions will look like 10 or 20 years from now."

Currency, Tax Concerns
Scotland's Energy Minister Fergus Ewing offered to meet Shell to discuss the future of the oil and gas industry if Scotland votes to end its 307-year tie with England.

"An independent Scotland with full control of its economy and huge resources will offer an attractive and stable environment for businesses in the offshore and other sectors," Ewing said in a statement.

Norway's Statoil, also a major operator in the North Sea, said it stood by a statement made by industry organisation Oil & Gas UK, which said it was essential the independence debate did not create any instability.

That view was echoed by TAQA, a subsidiary of the Abu Dhabi National Energy Company.

"Predictability and long-term planning are what the industry requires of any government, particularly in the fiscal regime and the licensing and regulatory framework," said a spokeswoman.

Several financial services companies have raised concerns about the risks, with Barclays and state-backed Lloyds Banking Group joining the list this week.

Among their concerns, companies have highlighted uncertainty over what currency would be used in an independent Scotland, how tax and regulatory regimes might change, the cost of doing business and whether EU membership would be feasible.

Two airlines, however, British Airways and Ryanair , have said Scottish independence could be good for their businesses due to proposals to abolish air passenger tax.

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Gulf of Mexico Oil Production on the Rise

Because of the long timelines associated with Gulf of Mexico (GOM) projects, the recent downturn in oil prices is expected to have minimal direct impact on GOM crude oil production through 2016.

Ferguson Appoints Partner OPS-OES

Ferguson Group Singapore, a specialist in the provision of DNV 2.7-1 / EN12079 offshore containers, reefers, tanks, waste skips, baskets, accommodation and engineering

Nabors Posts Quarterly Loss as Drilling Activity Slows

Offshore driller Nabors Industries Ltd reported a quarterly loss, hurt by lower drilling activity amid a slump in global crude prices.   The company posted a net loss of $891.

Finance

Shipping Industry Faces Shake Up

As global shipping grapples with its worst downturn in 30 years, private equity firms are unwinding massive bets made on the sector in a move set to accelerate

Gulf of Mexico Oil Production on the Rise

Because of the long timelines associated with Gulf of Mexico (GOM) projects, the recent downturn in oil prices is expected to have minimal direct impact on GOM crude oil production through 2016.

Vessel Sales: February 2015

Vessel sales for February 2015  - (as of March 1) as prepared by Shipping Intelligence, Inc., New York.   Date Reported - Vessel Name - DWT - Built -  - (Age)

Energy

Oil Storage at Sea Stalls as Profit Play Fades

Traders are cutting plans to use tankers to store oil at sea as the price incentive recedes, the global head of oil at mining and commodities group Glencore's said on Tuesday.

Ferguson Appoints Partner OPS-OES

Ferguson Group Singapore, a specialist in the provision of DNV 2.7-1 / EN12079 offshore containers, reefers, tanks, waste skips, baskets, accommodation and engineering

Former BP Boss Browne is DEA Chairman

Lord John Browne heads DEA's supervisory board * LetterOne co-owners Fridman, Khan also join * Unit changes name to DEA Deutsche Erdoel AG FRANKFURT, March 3 (Reuters) - DEA,

News

Winter in US Northeast Takes a Toll on Ferries

With its black hull rumbling against a field of broken ice, the Warren Jr. slowly eased away from a dock in the Boston suburb of Hingham on Tuesday, aiming to clear

Shipping Industry Faces Shake Up

As global shipping grapples with its worst downturn in 30 years, private equity firms are unwinding massive bets made on the sector in a move set to accelerate

Gulf of Mexico Oil Production on the Rise

Because of the long timelines associated with Gulf of Mexico (GOM) projects, the recent downturn in oil prices is expected to have minimal direct impact on GOM crude oil production through 2016.

Government Update

Hike in Service Tax at Indian Ports

The Indian Ministry of Finance has advised an increase in service tax and applicable at all ports. The effective date has not yet been announced. The rate

Manila Port Congestion Eased: Palace

Malacañang has declared that the congestion at the Port of Manila has been resolved, noting the various measures that the government and the private sector have implemented to address the problem.

Canadian Navy Delays Opening of Arctic Facility

Canada's military has again delayed the opening of a major new Arctic port, a sign the government is struggling to assert sovereignty over a remote resource-rich region.

Offshore Energy

Gulf of Mexico Oil Production on the Rise

Because of the long timelines associated with Gulf of Mexico (GOM) projects, the recent downturn in oil prices is expected to have minimal direct impact on GOM crude oil production through 2016.

Nabors Posts Quarterly Loss as Drilling Activity Slows

Offshore driller Nabors Industries Ltd reported a quarterly loss, hurt by lower drilling activity amid a slump in global crude prices.   The company posted a net loss of $891.

Maersk Drilling Secures Contract for Newest Drillship

Maersk Drilling was awarded a contract from eni Ghana Exploration and Production Ltd. for employment of the newbuild drillship Maersk Voyager.   The contract

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction
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: 0.1439 sec (7 req/sec)