Published in Oil Industry News on 2 March 2017, BP has announced a number of projects, globally, suggesting they are getting back to growth. Four projects in the North Sea and one west of Shetland are included amongst these.
Coming online this year are UK North Sea projects Clair Ridge, and Culzean along with seven other projects across the globe including the curiously named Mexican project Mad Dog 2! Applications to work on the latter must be flooding in…..from Mexican prisons?
Within the next five years, perhaps as soon as 2018, Clair South, west of Shetland, Alligin in the UK North Sea and Vorlich in the Central North Sea are confidently expected to be added, having entered the final investment decision stage.
These projects are based on the $55 per barrel price which now seems at least stable and probably likely to increase according to a number of indicators, including SNP policy, hedge fund trends and other investment by operators which I’ve mentioned already in:
According to BP:
‘The projects coming online in 2016 and 2017 are on track to deliver 500,000 boe/d [barrels of oil equivalent per day] of new production capacity by the end of this year,” says BP. “The new upstream projects remain on track to deliver 800,000 boe/d of new production by 2020, as previously guided. On average, the new projects are also expected to have operating cash margins 35% higher than the average of BP’s upstream portfolio in 2015.’
I know a lot of people lost their jobs in the downturn but we can now look to at least some re-employment in an admittedly streamlined sector. Such employment crashes are the brutal consequence of technology advances in other free-market sectors too. That’s why we need left-of-centre governments to protect welfare and to invest in capital projects and at least even-out unemployment trends.