On BBC Scotland at 06:28am today and sneaked in at end after the cheery stuff about the SNP conference:
‘The oil and gas industry’s being warned to keep an eye on rising costs as it recovers from the oil price crash. The findings from the Oil & Gas Authority showed expenditure of £6.9 billion, 2% higher than the previous year. Experts claimed this shows the recent years of sharp cost reductions are over. However, it’s still significantly lower than the peak of 2014. The unit of cost per barrel of oil also rose by 2% last year.’
I don’t suppose there was time for a wee sentence informing us what the income per barrel is? It’s currently around $80 and heading up toward $100 in 2019, my ‘experts’ tell me! What about the actual cost then? No time for that either? According to the BP CE it’s $12 per barrel so profit, before tax, would be $68 per barrel or $41.6 billion (613 million barrels x $68) in 2018 alone!
There’s a fuller report by Reuters here which puts ‘unit operating costs’ at £12.2 per barrel:
For the news on oil not found on BBC Scotland, see: