Scottish oil now worth more than at any time since May 2015

2013-06-12-scottish-oil-and-gas-boom-figure-1

(c) officerofthewatch.com

In Oil and Gas People yesterday:

‘Oil rose further above $68 a barrel on Tuesday, touching its highest since May 2015, supported by OPEC-led production cuts and expectations U.S. crude inventories fell for an eighth week. The Organization of the Petroleum Exporting Countries and allies including Russia are keeping supply limits in place in 2018, a second year of restraint, to reduce a price-denting glut of oil held in inventories. Brent crude, the international benchmark, was up 32 cents at $68.10 a barrel at 1311 GMT and earlier touched $68.29, its highest since May 2015. U.S. crude rose 37 cents to $62.10 and also reached its highest since May 2015.’

https://www.oilandgaspeople.com/news/15852/oil-hits-highest-since-may-2015-above-68-on-tighter-market/

This news comes after several weeks of prices well above $60pb. Brent crude prices rose to $66.87 per barrel, in early January 2018, from $27.67 in early 2016, due in major part to Saudi-led output cuts and growing demand from Asia. See this graph illustrating the trend:

oil

Production costs have also fallen to £12 per barrel creating enormous profit margins for the major producers. I don’t know if the Scottish media or the Treasury have noticed yet. See:

Scottish oil expected to hit $68 per barrel, up 146% on 2016’s low with production costs falling below $15 per barrel and ‘peak oil’ still to come

Prices are expected to rise even higher. Reported in Energy Voice at the end of 2017, anonymous Saudi sources, presumably from Aramco, predicted that crude oil would rise to $75 per barrel. This is not that shocking a claim given the Aramco chief predicted massive shortages and prices rising to $100 per barrel, only months ago. See:

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

Investors already betting on $100 per barrel oil in 2018? Indyref2 should be a very different story

https://www.energyvoice.com/oilandgas/159835/saudis-seen-counting-80-surge-oil-income-balance-books/

This is one more reason why we need to push for Indyref sooner rather than later and make sure this kind of information is everywhere on social media. Are the National and the Sunday Herald reporting this kind of thing. I’m not sure they are.

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5 thoughts on “Scottish oil now worth more than at any time since May 2015

  1. Alasdair Macdonald January 11, 2018 / 4:39 pm

    What the media will report is that as soon as ‘IndyRef 2’ emerges, the price will nosedive, never to recover and that all those newly proven reserves in the Atlantic and improved extraction methods for the North Sea will no longer be mentioned. Even if they were there, which they are not, Scotland is too wee and no very good, so we would not know how to extract it……… despite all that globally recognised expertise in and around Aberdeen and in other renewables industries elsewhere in Scotland.

    Like

    • johnrobertson834 January 11, 2018 / 4:52 pm

      Steady now. Maybe the RepScot and GMS staff will retire wounded and be replaced by the more honest youngsters from the website.

      Like

  2. Andy Mckay January 11, 2018 / 6:54 pm

    Good news that the price of oil is going up, the knock on effect for the average Scot is higher transport costs equalling higher shop prices coupled with low and stagnant wages. Were is the benefit.

    Like

    • johnrobertson834 January 11, 2018 / 7:40 pm

      I know but it counters the Unionist argument that Scotland would have no revenue from the oilfields.

      Like

    • Alasdair Macdonald. January 11, 2018 / 11:59 pm

      There will be a benefit in increased tax revenue. It accrues to Westminster, but, it contributes to the public purse. If it were all available to an independent Scotland, the benefit would be even greater, especially if a sovereign wealth fund were established or if it were also nationalised or if there were a significant national stake.

      Liked by 1 person

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