Prof Steve Horwitz
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.
Thanks to the Filthy Engineer for the video.
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23 comments:
If I was a cynical man, I might suggest that the main reason North Sea oil is not given more credit is because more Scots might wake up to the fact that Scotland is being taken for a ride, something unionist papers and politicians don't want to happen. People might start to question where the money goes, and notice many expensive projects in London over the years.
After all, it's patently ridiculous that Scotland is one of the major oil producers in Europe, and yet has such expensive fuel prices and such rubbish roads (bitumen being one of the products of oil distillation, of course).
Regardless of whether we're 5, 10 or 100 years away from the oil running out, the fact is it WILL run out eventually, so we are going to need to switch to renewable energy at some point. But in the meantime - and until renewable energy technology is perfected - we might as well be making the best of our magnificent resource, one which would be much better handled by the Scottish government than the Westminster one.
@ DD
"....After all, it's patently ridiculous that Scotland is one of the major oil producers in Europe, and yet has such expensive fuel prices"
Your cousins south o' the border also suffer 'expensive fuel prices' not because of the commodity price, but because of the added tax. And, the Tax added to the Tax.
Oil will always 'run out' "20" years into the future. It's termed 'the price of discovery' - the OilCos know where it is, they just don't announce their discoveries until the 'price is right'.
Luckily, the Scots sit on 300-years' worth of coal, if only the Greenies would let us burn it.
I've been hearing about impending Peak Oil since I was at school in the 1970's yet recent reports say that recoverable reserves are twice what they were in 1980, thanks to technology.
I have no problem with sensible renewables Doug, but now that solar and wind have proved to be far too expensive surely we must concentrate more on the likes of hydro.
As you gathered, the reason for the post is that I haven't heard one word about our oil - seldom do in fact - so thought it deserved some promoting.
Knowing people in the oil business who say there's a plentiful supply and also the money to retrieve it, I have no worries about my children or grandchildren being cold. I would like to see more plans for hydro though. We do hydro well in Scotland and the environment is very suited to it.
Aye Joe, every time I drive through Fife my eye is drawn to the redundant, overgrown mine heads under which lies enormous amounts of coal. Ask any Fifer over the age of 50.
Exactly banned and I hope yesterday's and today's video helps people understand the amount of propaganda circulated about oil.
There are hundreds of years of resources beneath our feet in terms of oil and coal. During such times as come, there will also be new methods of getting what is needed in terms of energy that will likely not severely tax any resources such as are now considered finite. Wind and Solar are not those alternative sources, and backing them, the Chris Lhunatic is apt to sentence us all to an impending disaster of no power, no heat, no light.
In terms of financial power, Oil is king - the currency of the World. While it is seen as a finite resource, new financial powers are sought in - renewables. One slight problem: What we have looked at and chosen in wind and Solar - don't work - and they know this. Step forward carbon trading. Ooops! Slipped up there. Wind and Solar work on small scale applications in charging batteries and pumping water - they even ground flour when the wind blew - but not if not! Their place in the World is to scam us all into coughing up more of the readies, and if you don't have the readies - a loan can be secured. Trap set and sprung.
Like the man says - "there's a Dollar sign behind everything nowadays".
I concur with everything you say Derek.
We wont get fooled again eh Rosie? Not much judging by the comments of the Holyrood Scotland bill review committee - quite happy to let the UK deal with the volatile issue of oil revenues. Aw well, it must be true then, we are too wee, too weak, and too stupid to manage our own affairs. There, there now, let the big laddies do it for you, it'll do ye nae herm ye ken. Pathetic
Tell me another oil producing nation--just ONE other than Scotland--that pays more for gas when the price of oil skyrockets.
Can't, can you...
Now why, do you suppose, is that? Well, it's none of my business, but I suggest thinking about it.
I must hat-tip banned, who always talks sense, and Derek for both being on the money here.
The fads are a big moneymaking scam but ultimately the fuels that work are still there. After years of technological innovation we're doing more with less too, and that trend is set to continue.
As new areas are explored and new discoveries 'drip fed' out to us to keep global fuel prices at a managed level (rightly or wrongly) we'll see that the lights don't go out...in spite of and not because of Huhne's monomania. We just need to play catchup with power station building sharpish.
There are growing bodies of opinion that are finding evidence that oil is a renewable resource.
http://tiny.cc/e0we6
http://tiny.cc/ldmf0
http://tiny.cc/dwdmk
It is politically convenient for the UK and the OPEC nations to perpetuate the theory that oil is finite and we have reached "peak oil." Especially as we see the SNP gaining in popularity.
"The oil will be finished in 10 years." "Shetland will go independent." The Ukanian state propaganda is juvenile stuff.
I have just bought a Rover Connoisseur 75, 2.5 V6, gas guzzling planet warming politically incorrect beauty of a car for very little money as people are running away from big cars. I am however getting it converted to run on LPG also, which is the equivalent of 40mpg in PPM. My next car will be a V8 guzzler as they are cheap as chips.
Key Bored Warrior - I would love the MG ZT V6 version of the Rover 75 but I could not afford to run it with the way the petrol prices are - as a matter of fact I couldn't even afford to run the diesel version either. It is bad enough in a diesel Clio.
Aye ASE, banned and Derek are on my wavelength. I'm not too sure about power stations up here because I think we could develop hydro far more, but I've to research that much more yet.
Wow lovely car KBW and you'll enjoy it I'm sure. Much depends on the mileage you do in such a car and of course the way its driven. I'm sure you'll drive it with due respect.
Billy nothing wrong with a diesel Clio. One of those was the best small car I've ever had and I should never have got rid of it.
Jeanne, that's something I've pondered for 30 years now and the only answer is that the Scots have allowed it to happen through apathy. They don't seem to understand the meaning of fairness nowadays.
There's no other country I know which would get away with it.
Strange you should mention that Dram because I've just been watching a recording of Newnicht and hey ho, Wendy was spouting about it.
I too have been hearing about peak oil since I was at school back in the mid-sixties; there was 35 years' supply left then, and there still is - for the reasons everyone has stated.
If Aberdeen is picking up, that's great news, but it's nothing to do with resources, it because there's stuff which is worth exploiting at $115 a drum, but which wasn't worth going for at $80 a drum. Simple.
And of course the prices of gas and oil are linked; not physically, since they are different products, but because they can, to some extent, substitute for each other. You don't need to posit conspiracy theories to explain this.
I agree with your point about the companies taking the risk that the price won't fall too hard WY. It's rather like modern medicine where costs for modern equipment can be high.
Gas and oil are joined in this part of the country for exactly the reasons you state.
Billy said...
"Key Bored Warrior - I would love the MG ZT V6 version of the Rover 75 but I could not afford to run it with the way the petrol prices are - as a matter of fact I couldn't even afford to run the diesel version either. It is bad enough in a diesel Clio."
Hi Billy I was going after an estate one of these the V8 with the Mustang engine. It had been rebuilt after a crash, but I drove it and it felt nasty and unbalanced so I swallowed hard and walked away. But the sound frown the exhaust was awesome. The thing is with LPG you can decat the exhaust as you are allowed to use LPG only for MOT, and the exhaust gas on LPG is as pure as a virgins breath. Your oil is still clean after 5k also so it is worth doing.
Hi Rosie, yes agreed lovely cars, built by BMW and a future classic. The one I am getting is as new condition, with a full service history.
I agree Rosie the Clio is an excellent car it was the price of diesel I was meaning to run it now is getting a bit steep. The French diesels are best that is why they are used in many other manufacturers cars
The Rover 75 is a BMW underneath but the mk2 version and the MG ZT is far a superior car because MG Rover improved the chassis. The MG versions were developed in secret when BMW owned them because BMW did not want the Rovers to intrude on their sporty sales.
In fact the new MG6 just coming onto the market has apparently got the best chassis on the market and is using lightweight alloys that BMW would not let them use at the time.
Billy I've a Citreon C3 and get 55mpg so running around locally sees me filling the tank about once a month which is bad enough. I don't know how people manage. Just this week a woman in front of me at the cash desk had to pay £89.
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