Is this the Yes campaign’s trump card? The Sunday Post is usually a reliable publication so I should think their research is thorough. How much more evidence do people need in order to understand how detrimental Westminster is to Scotland? The west of Scotland has suffered greatly since the collapse of its highly skilled industries and we now have generations feeling useless and living on benefits. Some expect the government to create jobs but must know governments can only help with job creation. We do need more jobs and more highly skilled work in order to encourage the young to study subjects which will deliver good rewards. That is a win-win situation because then the tax pool increases allowing housing and infrastructure projects to thrive. When I read the Sunday Post’s article my first thought was ‘if only’. My second thought was the MOD is powerful but not as powerful as those behind the door of No 10.
It was a funny old day yesterday in the north east of Scotland. While David Cameron, looking extremely uncomfortable during a visit to a North Sea oil installation, posed for his obligatory photography prior to the UK Cabinet meeting in the granite city, Alex Salmond and his cabinet colleagues met just a few miles down the A90 in Portlethen.
The meetings of the ‘great and good’ were all about oil, hence the rush to the oil capital of Europe. Strangely, for the past decade or so, UK politicians have been constantly reminding us beleaguered Scots that the oil is running out so fast there would be nothing left by 2020, yet with only seven years to go, yesterday David Cameron insisted the UK government is best placed to manage our oil and gas industries. Of course the UK government wants to hang on to the union’s greatest asset, who wouldn’t? Yesterday Cameron pledged a ‘revolution in North Sea oil and gas extraction worth up to £200 billion over two decades, but this will only be affordable if the union stays together.’ Ouch! Telling us Scots that we can’t manage our own oil and gas industries wasn’t a smart move. It was a bit late in the day for Ed Davey, the UK energy secretary, to announce ‘... a world first: making sure that we can capture the carbon emissions from gas plants in Peterheid in Aberdeenshire and those carbon emissions will be stored safely and securely under the North Sea.’ On radio Alex Salmond stated, ‘We can dae that tae nae bother’ - deflating Mr Davey’s grand gesture with his few simple words. More and more I wonder if David Cameron silently supports independence. It would solve some difficulties for the Uk government, not least the disappearance of 50 Scottish MPs. The Barnet consequential would also, as if by magic, no longer be a thorn in the sides of middle England. His Hug-A-Jock visit yesterday did little to endear the undecideds. If there was a winner in yesterday’s Battle of the Cabinets, Alex Salmond and his henchmen and women won hands down. I’m sure there was a collective sigh of relief when David Cameron and his cohorts crossed the border later and it could be that some then realised why the last UK Tory cabinet meeting in Scotland was in 1921. However, not all was rosy in Alex Salmond’s world yesterday. Chris Deerin wrote a scathing piece in the Mail about Scotland’s ‘self-preserving politicians who choose the easy option and status quo, rather than the hard graft, confrontation and unpopularity that comes with real leadership’. He asks where is our outrage. I’d like to assure him that not all Scots are happy with the dictatorial manner in which the Scottish government is pushing through bad legislation and paying no heed to public opinion. I have no doubt whatsoever that the SNP will pay for their behaviour at the ballot box though.
George Osborne's Budget announcement of a £10billion windfall tax on North Sea oil companies is causing problems, not least to Danny Alexander, who represents a constituency in which many oil related workers reside.
Some of Mr Alexander's colleagues have called for his resignation after it was reported he boasted to a group of 100 businessmen that the windfall tax was his idea. Not a smart move from Mr Alexander.
George Osborne, when being questioned by the Treasury Selection Committee(a lengthy video worth viewing) on last week's Budget defended the decision to up the oil taxes by 12% saying: "It's perfectly reasonable and the rate was still significantly lower than in Statoil's native Norway". Do I believe him? No. The Chancellor doesn't even know the amount of duty the Treasury receives from a litre of petrol.
In this area of Scotland there are many whose livelihoods depend on the oil industry and the massive tax hike has created anxiety among them. Statoil and Centrica have postponed projects and Valiant are reviewing a large investment.
Osborne's decision to inflict this tax upon the industry is wrong. It's only recently that the oil price increased and if the unrest in North Africa and the Middle East settled, it's likely the price would drop below $100 a barrel (35 gallons). Oil companies don't make investment decisions based on the current price but make longer term assessments. Today's projects are much more complex from those in the early days of exploration and they are more costly in development charges. The gradual increase in the oil price in the past few years has encouraged the large companies to look at investing in more complicated exploration but this windfall tax has created instability in the sector.
On Tuesday night, in the House of Commons, the government won a vote on the tax hike by 334 to 13, with two prominent Libdems MPs voting against. Both represent constituencies in Aberdeenshire. The vote shows their indifferent attitude towards the industry.
Today Chris Hulme will meet with oil and gas firms to discuss the tax. I doubt if Mr Hulme will make any concessions even if someone mentions the stupidity of Mr Alexander.
To upset the oil producers to this degree - for the sake of 1p on a litre of petrol - is foolish and ill-conceived. These giants are nearly as influential as bankers and should be treated with respect. After all, it's North Sea oil which has been keeping UK Plc afloat for the past 30 years. The Scots treat the industry with respect why can't the Westminster government?
I suggest the coalition's respect quota is kept completely for the bankers.
The continuing unrest in the Middle East has produced much talk about oil and oil prices with the announcement of vast profits by domestic suppliers. Nobody would think the UK produces oil because North Sea oil is never been mentioned and it's time it was given a little credit.
The city of Aberdeen has been a major player in the oil and gas industry since large offshore deposits were discovered in the early 70s. North Sea oil has been the foundation of Britain's economy ever since, yet it is seldom mentioned by politicians these days, unless it is in a negative context of comparisons with renewable energy sources.
In recent years we have been led to believe the oil reserves will be depleted in 5/10/20 years - make your choice - and I have long argued against these claims. The BBC and most of the MSM regurgitate the government's stance therefore it is little wonder it was only the Aberdeen P and J which has reported a 'Renewed drive for oil and gas promises boom'.
Increased capital investment amid buoyancy in the market could lead up to 15,000 people being employed by the industry this year.
Scotland accounts for about 45% of all oil and gas jobs in the UK and the Aberdeen area is home to the bulk of positions north of the border.
OGUK chief executive, Malcolm Webb, hailed the findings of the group's latest activity survey as a sign of renewed interest in Britain's oil and gas assets.
“There is huge potential,” said Mr Webb. “We have the capability and resources to drive economic growth for decades to come.”
Mr Webb isn't talking in years but decades. OGUK also added:
OGUK said there were significant challenges ahead for the industry, including fast-rising operating and decommissioning costs as well as “areas of uncertainty” on taxation.
But it added the bright prospects revealed by its survey showed that the importance of the UK oil and gas sector in economic recovery “must not be overlooked”.
It has been overlooked for years even though it's been oil which is seeing us through the worst depression since the 1930s. It is time the MSM, including the BBC, acknowledged the contribution North Sea oil has made to the UK's economy. With the ongoing unrest in the Middle East, our oil is more valuable to us than ever.
The green lobby won't like it of course; they would prefer we pay extra taxes for windmills to give an occasional shudder and to use the hidden 'green' taxes imposed upon us to reimburse those who can afford to install expensive solar systems on their property. If I was thirty years younger I would build my own house using geothermal energy as my heating source and hydro for my power. GE is not appropriate to every area though and surveying is expensive but it would be worth investigating.
As I've no chance of being 30 years younger I'm content to stick with using the oil found on my own doorstep. The days of believing oil is running out are long gone.
Greenpeace, on their website, have a picture of the Cairn exploration rig based off Greenland and 'shut down' written across it. Lots more propaganda about just how daring they were by evading the Danish navy and scaling the oil rig legs. 'Blimey this is exciting,' writes someone called Leila on board their ship.
It may be exciting to you Leila but your friends have committed a criminal act. There's nothing clever about hanging off the legs of an oil rig in your dry suits and safety gear, much of which will probably contain by-products of the very substance you detest- oil. I'm perfectly happy for you and your colleagues to put your lives on the line for your beliefs, indeed it's very noble of you, but as you bash out your propaganda on your laptop, in your expensive nylon kit and quite possibly cooking in Teflon coated pans, while cruising around in your fossil fueled luxury sailing craft, have you given one moment's thought to your hypocrisy?
Greenland's police spokesman, Morten Nielsen, said the activists are still on the rig and will be arrested. "When someone breaks the law - and it has happened here - the person or persons will be prosecuted," he stated from Nuuk, the capital of Greenland. The Greenland Premier Kuupik Kliest called Greenpeace's stunt an "openly illegal act" and a "gross violation" of safety rules.
"It is really worrying that Greenpeace uses all means to break the safety rules made to protect human lives and the environment in its quest for media coverage," said Kliest.
Throw the book at them Mr Neilsen. Dare devils or fools? Hypocritical fools.
Thankfully one of my vigilant readers brought this to my attention. The BBC, Scottish and UK media have ignored it.
Alex Salmond, Scotland's First Minister, has called for North Sea taxation to be devolved to Holyrood arguing that Scotland should start to benefit from its vast resources. Well done Mr Salmon and about time too!
During a meeting with the Norwegian Finance Minister, Sigbjorn Johnsen, in Oslo, Mr Salmond and Mr Johnsen discussed the Norwegian Oil Fund, the benefits it has secured for Norwegians and lessons Scotland can learn from the way their fund is managed and operated.
Norway's oil fund is worth over £300 billion and in the UK £242 billion of tax revenue has come from Scottish waters over the past 30 years.
Of course the UK government will further insult Scotland by suggesting the idea is ludicrous. The time has come for the oil revenues to be fairly divided. Already I can hear the English wailing it's not Scotland's oil but the UK's oil. They're wrong and no matter how much any Westminster government tries to change the sea boundaries, the oil in the past 30 years has been found in Scottish waters.
I was going to mention this post from BellgroveBelle in my previous post 'Take Your Pick' but decided it was too important and required a post of its own.
EnCore has found a significant amount of oil in the North Sea yet, as Belle mentions, there has been nothing about this in the media other than the snippet tucked away on the BBC website and a fleeting report on the late news.
It's impossible to disagree with Belle about an oil fund for Scotland. Surely Scotland could set one up or, at the very least, be able to hold back enough funds to balance our National Grid contributions in alignment with the average in England. Where power is concerned, what is the point of Scotland generating so much yet giving it away for nothing?
How often do we hear the Westminster government saying oil is running out in the waters round our shores? It's an argument used by the UK government to persuade Scots that their 'pot of liquid gold' will soon be no longer.
Therefore, it's little wonder this story hasn't received a mention in the Scottish or English dead tree press or from TV or radio broadcasters.
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and undeveloped field opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce the results of the side track appraisal well on the recent Glenlivet gas discovery, West of Shetland.
The side track was successfully drilled and confirmed the lateral extent of the high quality gas bearing reservoir. Based on the preliminary logging data, the results exceed the prognosed net gas column and reservoir quality.
The partnership has decided to drill a second side track appraisal well.
Graham Stewart, CE of Faroe Petroleum commented:
The Glenlivet well is the first of a firm five-well Atlantic Margin exploration drilling programme which Faroe is undertaking over the coming months. On Tuesday 29 September, Faroe announced the spud of the second well in the programme, operated by OMV, which will test the Tornado oil prospect, located close to BP's producing Schiehallion field. Following Tornado we are scheduled to drill three further high impact exploration wells, the Anne Marie oil prospect in the Faroes (operated by Eni), the Cardhu oil prospect in the UK (operated by BP) and the Lagavulin oil prospect in the UK (operated by Chevron).
We can only imagine the shock and grief of the families and friends of those involved in today's helicopter tragedy in the North Sea. Sixteen people were on board the Super Puma which was bringing workers back to shore. Eight bodies have been found but it seems there will be no survivors as this helicopter crashed into the sea, compared with the incident in February when the helicopter managed to ditch into the sea, resulting in all lives being saved.
There was a MayDay call around 2pm this afternoon. Aberdeen coastguard launched a major operation involving RAF helicopters, a Nimrod place and 11 ships and boats and the first rescue helicopter, which was quickly on the scene, could only see 2 lifeboats and bodies floating in the sea.
The First Minister Alex Salmond described the tragedy as "devastating and appalling" which is very true. Not only does such a disaster affect the north east of Scotland but about half the workers come from further afield. Since 1985 there have been 56 deaths and 18 survivors in helicopters taking oil workers to and from north sea platforms. That figure does not include today's deaths.
This puts all the glitter and spin of the G20 into proportion and all the talk about MPs being worth more than they are paid. The people who died today provide the UK with its oil and it's North Sea oil which has given the UK the standard of living they have enjoyed over the past 40 years. I do hope those who live both inside and outside Scotland realise the sacrifice made today and spare a thought for the families and friends of the dead.
SUBROSA - Please contact me if you have any ideas, stories or complaints: subrosa.blonde AT yahoo.co.uk Replace AT with the @ symbol. My profile can be viewed here.
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