Multi-million-barrel oil discovery in North Sea

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(c) Amulf Husmo | Getty Images

Hot on the heels of BBC Scotland’s gloomy warning headlined:

North Sea oil and gas exploration ‘at lowest level since 1970s’’

we see in Energy Voice today that US firm Apache has made a 10 million-barrel discovery in the Garten field 155 miles east of Aberdeen. Production will begin in 2019.

According to analysts Wood Mackenzie in Energy Voice:

‘Hot on the heels of Callater, Corona and Storr, that’s more than 85 million barrels discovered in the area since 2015.’

https://www.energyvoice.com/oilandgas/north-sea/167034/apache-makes-multi-million-barrel-oil-discovery-in-north-sea/

So, just from that one well, with crude trading at more than $60 per barrel that’s $600 million minus production costs of at most $150 million or $450 million to be shared between the shareholders, the staff and the treasury. At a 20% corporation tax rate that should be at least $90 million or £64 million.

Add this to the £75 billion we should be taxing the producers for the 11.7 billion barrels, by 2050, already predicted by Office for Budget Responsibility.

Correction: Office for Budget Responsibility massively underestimates North Sea oil revenues

Not a huge increase but remember that’s just one field, one announcement.

http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-43461811

 

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5 thoughts on “Multi-million-barrel oil discovery in North Sea

  1. Alasdair Macdonald. March 24, 2018 / 4:45 pm

    The BBC’s (and other’s) headlining of the fact that the number of new wells in 2017 was the lowest ever was another example of information without context.

    It was implying that all wells are the same size by virtue of the fact that they are wells.

    Since we know that the Kelvin and the Nile are rivers, it follows that they must be transferring the same volume of water ……… which is true if we measure the Kelvin’s flow for a century and the Nile’s for 10 minutes.

    Liked by 1 person

  2. Derek March 24, 2018 / 7:19 pm

    Damn. That’s Scotland done for, financially. Again.

    Liked by 1 person

  3. gonzalo1 March 30, 2018 / 10:17 am

    And little mention of the new gas fields. I wonder why?

    Like

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