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When I decided to put down the BBC attack dog after it kept biting me and adopt a friendly Pointer that would spot well fed Scottish wood pigeons for me, I thought it might be more difficult than it has been. I apologise for that astoundingly bad though dogged metaphor. Seriously, it has been remarkably easy to find good news about Scotland if you just don’t look in the mainstream media, especially BBC Scotland, for it. Today, it’s back to oil and gas with some surprisingly very optimistic stuff from the industry and its communication wings, posted daily. If I can find it then why can’t or don’t…..?
North Sea oil and gas is on the crest of a “third wave” in its evolution following a series of major deals worth more than $6billion (£4.8billion), energy professionals have claimed.
I had though Shell’s recent £3billion sale of North Sea assets to Chrysaor meant more evidence of declining expectations but it’s not at all.
According to Energy Voice, on 13th February 2017, the above sale: ‘is expected to be a catalyst for more mergers and acquisitions in the UKCS following the resurgence of oil-focused equity capital market investment……In the last six months £4.9billion worth of North Sea assets have changed hands, including last week’s £993million acquisition of Ithaca Energy by Israeli-based Delek Group.’
One of the benefits of the above deal will be the extended life of the Armada field which had been expected to be shut down.
Pinsent Masons’ head of corporate finance, Rosalie Chadwick said:
‘The Shell-Chrysaor deal will prove to be the tipping point which leads to the third wave of the North Sea’s evolution and a number of other significant transactions in the months and years ahead. More availability of funding, a stable oil price, better alignment of price expectations for both buyers and sellers, and a fresh approach to decommissioning responsibilities, means that all the chess pieces are lined up with the North Sea poised for a period of productive M&A activity.’
So the change of ownership and sales by large corporations may look at first sight like signs of uncertainty but is in fact evidence of this ‘third wave’ as: ‘well-capitalised new blood enter the sector and embracing new technologies, which make smaller recoveries in the more mature fields economically viable.’
https://www.energyvoice.com/oilandgas/north-sea/131460/north-sea-crest-third-wave-evolution/
Scotland could become a world leading exporter of oil and gas field extension and decommissioning solutions, according to government ministers.
Also from Energy Voice on 12th February 2017 we see the above claim from Scottish Minister for Business, Innovation and Energy, Paul Wheelhouse, made at the opening of the new the Oil and gas Technology Centre in Aberdeen.
The claim was made as North Sea industry heads met at the launch of the new Oil and gas Technology Centre in Aberdeen. Wheelhouse said:
‘This is a sign of confidence in the industry from both governments, saying we’ve got faith in the future of the oil and gas industry. We are not at the end of the road, far from it.’
Industry body Oil and Gas UK has hailed the Scottish Government’s multi-million pound backing of a decommissioning fund as a major boost for the struggling supply chain.
Finally, from Energy Voice again, on 8th February, we can see the Scottish Government is right behind these developments. The headline is a bit OTT for the amount, £5 million, on offer but hey. You can find what Labour and the Tories thought, yourselves.
Oil and Gas UK chief executive Deirdre Michie said:
‘The First Minister’s announcement today of a new £5 million fund to support Scottish companies looking to take advantage of decommissioning sector opportunities is encouraging news for the many supply chain companies still struggling in the downturn… Our forecasts suggest an average of £1.7 billion will be spent on decommissioning in the UK each year over the next ten years and so it is helpful that we should support the UK supply chain to develop its capacity to compete effectively.’
Like me, many of you will be strong supporters of the expansion of carbon-free technologies. I’m reporting this because in the fight for independence, I think we still have to counter the endless negativity about the North Sea and the associated implication that it somehow puts an end to Scotland’s future viability as an independent nation.










