March 14, 2019

Oil & Gas UK

  • The P&J front page headlines with“forecasts for oil and gas revenues down £600m a year”.  It comes as OBR figures included within the spring statement has lowered forecasts for UK oil and gas revenues by an average of £600million per year to 2024, following a drop in the oil price and “unexpectedly weak” spending in 2018. Revenues are expected to be £1.1billion in the next tax year, a drop of £800m compared to the earlier forecast made in October.  OGUK Chief Executive Deirdre Michie said: “At a time when industry continues to face many uncertainties, fiscal and regulatory stability are key enablers to help the offshore industry realise the opportunities for decades to come in the North Sea. “The £8.5 billion in direct taxes adds to the £350 billion already contributed over the last five decades. It reinforces the continued importance of our industry to the wider UK economy, supporting over 280,000 jobs, many of them highly skilled, and providing security of energy supply.” Energy Voice. Also featured in the Daily Mail, Daily Express, the FT and Upstream.

 

Companies

  • Cairn Energy has booked Stena Drilling for a UK North Sea exploration well later this year,says Energy Voice .The Stena Don semi-submersible rig is about to start a drilling campaign with Total E&P UK and should move onto Cairn’s Chimera prospect in the third quarter.
  • Shell chief executive Ben van Beurden took home nearly £18 million in pay last yearas a reward for spearheading the energy giant’s “transformation” says Energy Voice.

 

Climate Change 

  • The Financial Timesdiscusses how oil companies plan to survive and grow if oil consumption falls in the coming years to help keep global temperatures under control. Strategies include making their barrels the lowest-cost to produce through making better use of infrastructure, technology and cost discipline. For some companies, a push for resilience has meant reshaping their portfolios to offload higher-cost assets. It leads with numerous industry comments made at an energy conference in Houston this week, where Eldar Saetre, chief executive of Equinor, said the companies that succeed in the future would be the ones that develop not only the cheapest barrels but also the cleanest ones. The piece ends with the reflection “If every oil company in the world believes they can win this contest, holding out to be the last producer standing, they cannot all be right. 30 per cent drop in consumption would mean some would have to lose out. In the Darwinian struggle to adapt to a new energy system, some will become extinct. The companies that will succeed will be those that produce the cheapest and the cleanest barrels£

 

Renewables 

  • An Orkney-based tidal energy firmhas attributed increased staff numbers to its growing reputation as a Highland’s and Islands success story. Orbital Marine Power chief financial officer Chris Milne yesterday revealed the company has added nine workers to its roster. Reports the P&J. 

 

Commodity price

  • North Sea Brent Blend for April deliveryclosed up $0.84 at $66.58 per barrel.
  • The NBP gas price closed downat 515 per therm.