• North sea oil industry on verge of collapse as prices drop
    57 replies, posted
[img]http://news.bbcimg.co.uk/media/images/79804000/jpg/_79804662_014362924-1.jpg[/img] [B][i]The UK's oil industry is in "crisis" as prices drop, a senior industry leader has told the BBC.[/i] [quote][/B]Oil companies and service providers are cutting staff and investment to save money.Robin Allan, chairman of the independent explorers' association Brindex, told the BBC that the industry was "close to collapse". Almost no new projects in the North Sea are profitable with [URL="http://www.bbc.co.uk/news/business/market_data/commodities/143908/intraday.stm"]oil below $60 a barrel,[/URL] he claims. [B]'Everyone is retreating'[/B] "It's almost impossible to make money at these oil prices", Mr Allan, who is a director of [URL="http://www.bbc.co.uk/news/business/market_data/shares/3/87550/one_month.stm"]Premier Oil[/URL] in addition to chairing Brindex, told the BBC. "It's a huge crisis." "This has happened before, and the industry adapts, but the adaptation is one of slashing people, slashing projects and reducing costs wherever possible, and that's painful for our staff, painful for companies and painful for the country. "It's close to collapse. In terms of new investments - there will be none, everyone is retreating, people are being laid off at most companies this week and in the coming weeks. Budgets for 2015 are being cut by everyone."[B][/quote] [/B][url]http://www.bbc.co.uk/news/business-30525539[/url]
Exactly what the Sauds wanted to happen :(
How about they live a bit on the reserves they made when the barrel was >120$.
please continue dropping. this is the best thing since ever.
[QUOTE=AntonioR;46746213]How about they live a bit on the reserves they made when the barrel was >120$.[/QUOTE] A bit late for that now. Even before the oil price drop, the industry was already starting to slowly decline.
On one hand I love cheap gas, on the other it's bad for everyone if the industry goes kaputz
How about instead of cutting people cut you executive bonuses and extravagant spending. Up until the price dropped they were all having record sales far beyond what they used to be. Have they forgotten how it was or have they become used to a certain "standard of living" and wish not to give that up?
How about instead of becoming increasingly reliant on oil, we actually work to make a shift to clean energy. I wouldn't have a problem with the world's oil industry collapsing.
"It's almost impossible to make money at these oil prices" Ahahahahaha! I can't believe how fucked up these people are. They make billions every fucking month and they complain because someone's putting a fairer yet still extortionate amount of price on oil. People fucking die from not being able to fuel heating in their homes for gods sake.
They probably are still making profits, the amount of times I've heard companies worried and 'paniking' over price drops so they raise their prices and what a surprise they still made a big profit over the year, do they drop the prices back down? no they keep them up still thinking people are to stupid to know any better.
$2.50 a fucking gallon around here.
Oh no... do the oil barons only get to make a couple billion instead of a dozen.... what a fuckin' travesty.
[QUOTE=FurrehFaux;46746540]How about instead of becoming increasingly reliant on oil, we actually work to make a shift to clean energy. I wouldn't have a problem with the world's oil industry collapsing.[/QUOTE] While we need to cut back drastically, replacing oil with sources like nuclear will take a long time, construction takes years upon years. It would be a disaster. [editline]19th December 2014[/editline] [QUOTE=Richoxen;46747502]Oh no... do the oil barons only get to make a couple billion instead of a dozen.... what a fuckin' travesty.[/QUOTE] Venezuela is in danger, and other countries that base(stupidly) most of their economy around oil, It's not good for a lot of regular people.
[QUOTE=SpaceGhost;46747556]While we need to cut back drastically, replacing oil with sources like nuclear will take a long time, construction takes years upon years. It would be a disaster. [editline]19th December 2014[/editline] Venezuela is in danger, and other countries that base(stupidly) most of their economy around oil, It's not good for a lot of regular people.[/QUOTE] I know, i'm commenting specifically about the guy in the article.
I don't know too much about oil companies but I'm almost certain they've been hitting record profits for quite some time now. How is (how long has it been since oil dropped? A few months? It hasn't been long) a few months of lower prices, causing them to fail directly after years upon years of what I can only imagine to be record profits.
[QUOTE=Megadave;46747474]$2.50 a fucking gallon around here.[/QUOTE] $2.2x's over here
[QUOTE=Lf751;46746710]They probably are still making profits, the amount of times I've heard companies worried and 'paniking' over price drops so they raise their prices and what a surprise they still made a big profit over the year, do they drop the prices back down? no they keep them up still thinking people are to stupid to know any better.[/QUOTE] It's not a question of ' still making a profit'. The issue is less profit might cause loss of confidence and a drop in stock, which could be very dangerous if everyone does it. I dislike them, their practices and the industry in general but their concern is legitimate, at least for them.
The rig count here in North Dakota is supposed to drop 40%, definitely slowing down I think I'm going to leave the industry and go back to school soon
To everyone saying $60/barrel is a lot or enough, consider the price of water. A litre of petrol a few months ago cost £1.35. A litre of bottled water at my university costs at least £2. A barrel of oil is 158 litres, so $0.37 / litre. That's nothing. If this keeps up lots of jobs will disappear and lots of economic activity will simply shift to the saudis instead of here.
£1.10 a Liter again around my city, I'd never thought I'd see it hit that again in my lifetime, I remember when it was like £0.95 a Liter.
I hear it's supposed to drop lower than £1.00
Imagine if this was independent Scotland, they'd be shitting themselves far worse.
[QUOTE=Vasili;46748504]Imagine if this was independent Scotland, they'd be shitting themselves far worse.[/QUOTE] We would have to wait until prices rise to build our oil fund. Repaying our share of the UK debt would have to wait a bit longer. A few of the SNP's more expensive plans might have been delayed. That's about as deep as the rabbit hole goes. Scotland wouldn't have been entirely reliant on oil. And - if we had been independent since 1979 we would have had a sizable oil fund to ride out the low prices.
$1.90 a gallon here, was $1.99 yesterday.
Last time I checked was sunday and I paid $2.67
Can someone explain to me why oil prices fell so much? Were they artificially inflated or something before? Or did we run into huge oil deposits or something? I honestly can't wrap my head around how a finite resource can drop in price so quick when we aren't creating more of it.
Demand dropped, but supply didn't
[QUOTE=Buck.;46748598]Can someone explain to me why oil prices fell so much? Were they artificially inflated or something before? Or did we run into huge oil deposits or something? I honestly can't wrap my head around how a finite resource can drop in price so quick when we aren't creating more of it.[/QUOTE] Saudi ramped up production to muscle out the US fracking industry.
[QUOTE=Flapadar;46748623]Saudi ramped up production to muscle out the US fracking industry.[/QUOTE] It's not going to work. If the Saudis are doing this to kill US oil production they will fail at that. Yeah sure quite a few wells run at $80 to the barrel, but there are also a lot that can run at $25. All that's going to happen is companies are going to invest in ways to cut costs even more and wait it out. Also the massive cut in prices is also largely due to a drop in Chinese growth and Libya pumping out oil now. Things might change when Venezuela collapses. [QUOTE=Flapadar;46748531]We would have to wait until prices rise to build our oil fund. Repaying our share of the UK debt would have to wait a bit longer. A few of the SNP's more expensive plans might have been delayed.[/QUOTE] Wouldn't have been possible. Oil production in the North Sea is in terminal decline and the Grangemouth refinery is being propped up by the government. The oil fund is something that could have been feasible 30 years ago, but in no way at all is it possible today.
[QUOTE=Deng;46748643]It's not going to work. If the Saudis are doing this to kill US oil production they will fail at that. Yeah sure quite a few wells run at $80 to the barrel, but there are also a lot that can run at $25. All that's going to happen is companies are going to invest in ways to cut costs even more and wait it out. Also the massive cut in prices is also largely due to a drop in Chinese growth and Libya pumping out oil now. Things might change when Venezuela collapses.[/QUOTE] Fracking is expensive. You can't just shove normal gauges down when fracking ( funnily enough, people try. Then the equipment fails under the pressure). New equipment, more investment.
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