With shortages and price increases on the near horizon, Scottish North Sea oil field start-ups reach a 10-Year High

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The Bloomberg report based on data from Wood Mackenzie fails to explain just why profit-making concerns would actually be doing this and relies on self-congratulatory but non-explanatory references to earlier investment in the fields when prices were higher but we all know none of that would matter unless they confidently expected that big profits were coming their way.

 

We’ve already seen numerous experts predicting global shortages and consequent price hikes. See just these two examples from the Aramco and Haliburton CEOs:

Independent Scotland’s oil wealth is assured as Aramco chief predicts huge shortages

Will Scotland’s oil hit $100 (or more?) a barrel again after 2020?

This year alone, 14 fields with a projected production of 230 000 barrels will start-up but that will make only a tiny impact on global shortages and prices will be high. Global demand is currently approaching 125 billion barrels per day and 92 million oil-based cars will be bought this year alone. See this if you think, regardless of how green you’d like things to go, the demand for Scotland’s oil is not going to be massive and consequently very lucrative for a small independent country:

‘The Steady Drumbeat of More Global Oil Demand’

https://www.forbes.com/sites/judeclemente/2017/05/29/the-steady-drumbeat-of-more-global-oil-demand/#372782345e2d

https://www.bloomberg.com/news/articles/2017-09-04/u-k-north-sea-oil-field-startups-surge-to-highest-in-10-years-j75n10pi

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2 thoughts on “With shortages and price increases on the near horizon, Scottish North Sea oil field start-ups reach a 10-Year High

  1. Ludo Thierry September 4, 2017 / 7:28 pm

    Hi John – Hi all.

    John – you keep finding (and bring it to public view) the growing evidence of a substantial pick up in the Scottish Sector – which seems to be gathering pace. One would scarcely get any sense of these developments if one’s only source of info was the beeb or Scottish print media.

    One other indicator of a general pick up in the Scottish economy did get a mention today on beeb website Scotland business page – but no relevant context offered re. this development echoing others and being part of a wider picture (except in the quotes carried). I strongly suspect the improving activity levels in the Scottish Sector impact on Inverness airport in addition to Scotland’s other transport hubs. Anyway – I suppose we need to be grateful that this info (see below) about the record growth at Inverness airport even got a mention (let alone a positive headline) from the beeb:

    Inverness Airport experiencing record growth

    Inverness Airport has experienced its longest sustained period of growth in its 77-year history, according to the company that runs it.

    The numbers of passengers using the airport has been increasing every year and in July it recorded its highest monthly figure of more than 93,000.

    Highlands and Islands Airports Ltd (Hial) estimates that its airport has brought £75m to the Highlands economy.

    Inverness has flights connecting it with Heathrow, Schiphol and Manchester.

    Transport Minister Humza Yousaf has welcomed the latest passenger figures.

    He said: “These are very encouraging figures and further proof that Inverness Airport is continuing to go from strength to strength.
    “The launch of additional services to Amsterdam and London is really paying dividends, and this improved connectivity is supporting both our tourism sector and Scottish businesses looking for better access to global markets.
    “There is no doubt Inverness Airport plays an important role for the local and national economies and I congratulate everyone involved for their efforts.”

    Hial managing director Inglis Lyon said: “Inverness is now better connected than it has ever been and this can only be good for the Highlands and Islands economy and Scotland as a whole.
    “Our international connections to two of the world’s great hub airports in Amsterdam and London make it easier than ever for people to travel to and from the region.”

    Scottish Council for Development and Industry regional director, Fraser Grieve, said the new figures were significant for the region.
    He said: “Continued growth through Inverness Airport shows the impact that their improved connections and increased routes are having on the Highlands, with many hotels and visitor attractions reporting bumper trade.
    “Businesses are finding it easier to access new and existing customers through the airport and I hope that with these positive numbers we’ll see the continued sustainability growth of passengers.”

    Note the piece actually carries a quote from SNP Scottish Govt Transport Secretary Humza – as well as the SCDI regional director – this is better quality reportage than they typically manage. It is amazing what they can do when they try a bit.

    Off Topic: Was disappointed to see the vibes reported today regarding the London Labour (Scottish accounting unit) branch manager election. Apparently there is an element in the Blairite faction making reference to the difficulties that Richard Leonard MSP might face as someone hailing from England (I believe he was originally from Yorkshire). The clear implication being that they fear being that this factmight might not play well with their membership and target audience in Scotland – I suppose that is the logical end result of the whole Better Together project when the BT parties were forever droning on about Scots becoming ‘foreigners’ down south and vice versa – anfd families being split assunder by ‘foreign’ passports etc.

    If you keep bombarding your members/supporters with that kind of unpleasant drivel for years then, sadly, it pervades the entier political discourse of those who peddle it – Sadly, Richard Leonard was an active participant in that campaign – so has to take his share of the blame for inculcating these deeply unpleasant ideas amongst the remaining Labour activist base in Scotland.

    Hopefully the Labour Scottish accounting unit members/supporters will find ways of moving beyond these limiting and antediluvian ideas that they were instructed to spray around the body politic before and during the Indyref period. Fortunately, I am a member of a Party (SNP) which doesn’t care where people come from – but rather where they hope to bring Scotland to. Being a ‘new Scot’ myself I find this to be the SNP’s greatest single strength (and probably the principal reason that the SNP will be the political vehicle that will deliver Independence in the near future).

    Given that Richard Leonard was, apparently, an election agent (or campaign organiser or similar) for the dreadful Blairite MP for Stirling (from memory her name might have been Ann McGuire?) I really find it hard to believe he has a ‘leftist’ bone in his body!

    Thanks, Ludo

    Like

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