Britain to open a new North Sea?

[ziggy12345]

http://www.investorschronicle.co.uk/Mar ... flight.jsp

If this is what you are talking about then its at most 3.5billion barrels or about 40 days world consumption.

British oil workers can’t get jobs in the North Sea let alone in the south Atlantic. At the moment there are companies advertising jobs in job centers at £30 per day offshore in the North Sea. When nobody takes the offer the companies can then bring in Philippines on a transit visa. I was speaking to a guy recently and he was the only British guy on the rig. Most were eastern Europeans. To think an international oil company would bring a high paid British worker to the other side of the world when there is a ready supply of cheap labor just over the sea is ridiculous

British service companies will make fortunes. Exact what ones are they? Expro is the only one I know of and the American one I am working for has just thrown them off the contract with BG as we are miles cheaper. There is no rule that says British service companies get first pick of the cherry when dealing with an international oil company

Corporation tax will be paid in Britain. More likely the companies bidding for the contracts will get paid incentives to actually operate in such a hostile environment. The locals will get jobs and won’t have to claim the dole. A big incentive to have the operator there.

Operations in the North Sea have declined due to the large tax burden from the British government, all the majors have left to operate in cheaper areas. If the same tax system is applied to operations in the Falklands then operators will cut expenditure to the bone to make a small profit.

The irony of the economic system we use when applied to oil is that as the oil becomes more expensive in energy terms to extract the less incentive there is to invest in oil exploration and development infrastructure.

[fifthcolumn]

quote]Those of us who take the holistic view see the interconnectedness of all things.

Sudden flashback to the early eighties at yooni when my mate dropped out to go live in the orkneys. That's the sort of thing he would have said.

[fifthcolumn]

Operations in the North Sea have declined due to the large tax burden from the British government, all the majors have left to operate in cheaper areas. If the same tax system is applied to operations in the Falklands then operators will cut expenditure to the bone to make a small profit.

1. It could be nationalised.

2. Supply agreements could be stitched up meaning the government gets it's share of petrol tax on the imported stitched up supplies.

There is a guaranteed supply agreement between the US and Canada written in to NAFTA. Canada MUST supply the US or it's in breach of NAFTA.

I'm fairly sure such a deal could be written to supply the UK.

[Cabrone]

http://www.investorschronicle.co.uk/Mar ... flight.jsp

If this is what you are talking about then its at most 3.5billion barrels or about 40 days world consumption.

British oil workers can’t get jobs in the North Sea let alone in the south Atlantic. At the moment there are companies advertising jobs in job centers at £30 per day offshore in the North Sea. When nobody takes the offer the companies can then bring in Philippines on a transit visa. I was speaking to a guy recently and he was the only British guy on the rig. Most were eastern Europeans. To think an international oil company would bring a high paid British worker to the other side of the world when there is a ready supply of cheap labor just over the sea is ridiculous

British service companies will make fortunes. Exact what ones are they? Expro is the only one I know of and the American one I am working for has just thrown them off the contract with BG as we are miles cheaper. There is no rule that says British service companies get first pick of the cherry when dealing with an international oil company

Corporation tax will be paid in Britain. More likely the companies bidding for the contracts will get paid incentives to actually operate in such a hostile environment. The locals will get jobs and won’t have to claim the dole. A big incentive to have the operator there.

Operations in the North Sea have declined due to the large tax burden from the British government, all the majors have left to operate in cheaper areas. If the same tax system is applied to operations in the Falklands then operators will cut expenditure to the bone to make a small profit.

The irony of the economic system we use when applied to oil is that as the oil becomes more expensive in energy terms to extract the less incentive there is to invest in oil exploration and development infrastructure.

The 3.5bln bbl figure sounds like the North Falkland Basin.

However there is also a (geologically separate) southern basin which is being investigated by 2 companies - one called Falklands Oil and Gas (FOGL) and the other is Borders and Southern (BOR).

Not sure about BOR but FOGL think there may be as much as 40 billion barrels in their acreage:
http://www.fogl.com/operations/leadsProspects.asp

If these prospects offer anything like what is being talked about then the Falkland Islands may probably become the richest place on earth.

That said there could be nothing there and it's back to sheep farming for the locals.

[PS_RalphW]

If it is south of the Falklands think of Brazilian deep offshore with icebergs.

It will be very expensive to develop. If the oil is there it will be profitable but nothing is going to flow for 10 years. In that environment even 40Gb is not another Saudi Arabia. UK North Sea peaked at ?2Mbpd. You would be lucky to match that in such harsh conditions.

It will not prevent peak oil, it might offset depletion by one-two years.

If it is there.

[ziggy12345]

[quote="fifthcolumn..

1. It could be nationalised.

....[/quote]

All oil (and gas)vcompanies will have to become nationalised eventlually.

[Cabrone]

If it is south of the Falklands think of Brazilian deep offshore with icebergs.

It will be very expensive to develop. If the oil is there it will be profitable but nothing is going to flow for 10 years. In that environment even 40Gb is not another Saudi Arabia. UK North Sea peaked at ?2Mbpd. You would be lucky to match that in such harsh conditions.

It will not prevent peak oil, it might offset depletion by one-two years.

If it is there.

The North Falklands basin is fairly shallow and has similar conditions to the N.Sea but the Southern basin is deeper and wilder.

However if oil is at the right price it will be pumped out soon enough. As a rough guide one of the companies in the North basin think that around $35 per barrel is economical (if my memory serves me right).

I don't think the infrastructure overhead would be too bad - I'd imagine they'd park a few FPSOs down there and allow tankers to come along and fill up. Not a piece of cake but not beyond current capabilities.

Also remember the 40Gb figure is just FOGL, BORs acreage may add another 10Gb (guess??) and the North Falklands estimates are from nothing to around 9Gb.

Overall I've read ranges from zilch up to 60Gb around the islands. The geologists think that the source rock is apparently the 2nd best source rock in the world too.

Yesterday a rig started the long journey from Scotland all the way down there and should arrive at the end of Jan.

After years of speculation crunch time is coming up.

[fifthcolumn]

It will not prevent peak oil [60 BB], it might offset depletion by one-two years.

If it is there.

If it is there. True.

However, as to your other point. We're not talking about equitably distributing this globally. We're talking about plugging the hole in the UK's budget. 60 billion barrels would do nicely sir.

[Vortex]

We're talking about plugging the hole in the UK's budget. 60 billion barrels would do nicely sir.

... if we don't let some Eurocrat nick it ...

You are aware that the EU Treaty or whatever it's called allows the EU to seize our oil and gas if they so desire? 'For the common good'.

Now if the EU is fuel deficient and we have an oil tanker steaming up The Channel, will it turn left or right?

[revdode]

Now if the EU is fuel deficient and we have an oil tanker steaming up The Channel, will it turn left or right?

Whichever way it'll fetch the highest price, and if neither it can always sit offshore for months until it can fetch the price wished for.

[OrraLoon]

Speculation is that the 2000 odd Falklanders could be sitting on something as big as the N.Sea.

Yep, but how would that be a life-saver for the UK? Why is Britian spending a fortune defending the islands? Is Britian hoping for some crumbs from the nouveau riche table? Will Falklanders be buying Liverpool FC and houses in Mayfair?

Well for one thing I've heard that they'll be paying for their own defence and as 5thColumn says I'm sure if there's money to be made then HMG will figure out some way to get their teeth into it. Also as there's so few Falklanders it would be good for UK jobs. Long way to go though.

That said, could be that all they find down there is mud and crabs.....

I've always thought that the Falklands would be a perfect place for a Museum of Britishness. Sheepeaters rather than Beefeaters. We can make a modest contribution to fend off the Argie hordes [or 'hoards', as many posters seem to prefer] but for post-modern needs we'll be looking at west of Shetland, the Pentland Firth, hydro, selected wind power, etc.

[Adam1]

Sorry if this has already been said but, putting aside Biff's very valid point about CC (and the need to look beyond PO), I can't see that another North Sea would help Britain. All we would do is piss away the money and the energy for a second time and end up back where we are now.

[Cabrone]

Sorry if this has already been said but, putting aside Biff's very valid point about CC (and the need to look beyond PO), I can't see that another North Sea would help Britain. All we would do is piss away the money and the energy for a second time and end up back where we are now.

Would like to think that they use the revenue to prepare the UK for an energy transition and the future changes in climate but I have a nasty feeling you might be right.

This country never seems to learn anything apart from short term greed.

- yes, we just don't seem to be able to do long-term

[UndercoverElephant]

I've only heard about possible oil in the Falklands or the home counties.

There's definately oil in the home counties. I regularly drive past oil wells in Sussex. There's just not enough to make a significant impact on anything. There's lots of little fields and no big ones.

[jonny2mad]

well if theres oil there and the world goes into peak oil where theres shortages we may well have falklands war 2.