Oil shortages loom and Scottish crude looks like making lots of money for the Treasury

SFF+Quay-1_blog

(c) oil-electric.com

One of the world’s largest crude storage facilities in South Africa is emptying fast as demand booms and the OPEC cuts hold firm. This may be an early sign of the serious shortages and consequent price hikes forecast only two months ago by the Aramco chief. In July 2017, he described the outlook for oil supplies as ‘extremely worrying’ and argued that the transition to alternative fuels will be too slow to prevent massive shortages and a price boom.

https://www.energyvoice.com/oilandgas/151154/oil-traders-empty-key-crude-storage-hub-demand-booms/

https://www.bloomberg.com/news/articles/2017-07-10/aramco-to-spend-300-billion-as-ceo-frets-about-world-oil-supply

As Scotland can increasingly rely on it renewables, this is good news for the sales of North Sea and West of Shetland oil. Unfortunately, it’s coming too early for a Scottish Treasury to reap the benefits.

According to Energy Voice today:

‘Crude demand is now seasonally outstripping supply, tightening the physical market for some crude varieties to levels not seen in the last two years and encouraging traders to sell their stored oil.’

https://www.energyvoice.com/oilandgas/151154/oil-traders-empty-key-crude-storage-hub-demand-booms/

Another clear sign is the further increase in Brent prices for crude in November, up to $56.14 per barrel from $54.29.

http://www.marketwatch.com/investing/future/brent%20crude?countrycode=uk

Bear in mind the BP chief’s admission that it costs only $15pb to extract the oil. See:

North Sea oil companies making $40 profit on every barrel and costs are still falling!

 

Advertisements

5 thoughts on “Oil shortages loom and Scottish crude looks like making lots of money for the Treasury

  1. Alasdair Macdonald September 21, 2017 / 11:04 am

    And, of course, this week the mainstream media have resurrected the old canard that the end is in sight for North Sea oil. They have been warning about this since the Queen turned the tap on production, when Tony Benn warned that it would be all over by 1984.

    Of course, it is still called ‘North Sea’, with any reference to fields in the Atlantic, west of Shetland being buried in later paragraphs, if mentioned at all.

    Seldom mentioned in these reports is how successful renewables have become in Scotland.

    This is one of the main reasons that Westminster wants to keep Scotland ‘catch’d’. Add the Scottish fishery and the Scottish territorial waters and we have another couple. If we look in detail then we might find at least 111 reasons why Westminster continues to subsidise, with such generosity, the ‘basket case’ that is Scotland.

    Liked by 2 people

  2. Clydebuilt September 22, 2017 / 8:19 am

    What wasn’t reported off the speech was “. . . Bind her fast by means of Eastenders, Coronation St, Strictly…., and Footy for the blokes”

    Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s