So............It seems the North Sea oil companies can't make a profit with oil at less than 60$ a barrel..........I think that probably means enough profit. But what would that mean for us if it did collapse? Would petrol get any cheaper or would it rocket in price?.........I'm inclined to think the latter.
wont happen. there is talk that the price is being kept artificially low in an attempt to screw puttin and isis.
On the one hand, petrol is sold in an open competitive market, and I somehow doubt that the bulk of what we use comes from the North Sea.... but on the other hand, at some point surely HMG will want to increase road fuel tax to make up for falling North Sea oil tax revenue, and the drop-off in VAT revenue from petrol!
already the Scottish fishing industry is being affected, sweedish food / fish processors, European fruit growers, Australian fracking company went bust yesterday,, etc etc , and now the NS oil industry is " threatened ",, ,it seems the US are prepared to wreck the world economy in their drive to destroy the Russians,, the only country not being affected by this American led economic cold war is America.,, but still we stand by and let them do it..
the worlds oil still comes from Saudi Arabia,,, who created / owns them,, you guessed it, the USA ..:Arghh:
I can understand how fracking companies, and others involved in extracting gas and oil, are affected negatively by a fall in the oil price. But what is the problem for fishing or fruit growing - surely those industries consume oil, so their costs will have reduced? How can the USA "not be affected" anyway? The US oil companies will be seeing a big drop in revenues/profits and their fracking industry is not going to be helped by this. Just think what would happen if (or when) the fusion power problem is cracked, and cheap clean hydrogen fuel becomes a reality.
Cant see how it affects fracking co's either, unless they are taking investment capital from the exorbitant profits of the oil barons
Actually Suadi arabia is in a price war with America, they are prepared to let the price go to <$50/barrel becuase thats below the break even point for the new shale oil extraction in the U.S Because of the shale oil discovery America is now the world largest oil producer but its more expensive to get at. The saudi's and america are locked in a battle to the economic death, possibly literal death. If it takes the resurgence of America as a cost to put the saudi's in their place i will take that deal, not a fan of either of them but its a balance thing.
this is from the figures that Total are telling us on the North Alwyn platform in the North sea, this is just our platform!!! Subject: Lower oil and Gas price. How it effects Total North Alwyn Some interesting information for you. Looks like there will be big cut backs forthcoming. Nothing new, although some companies will survive and ride out the low oil price storm, others will not. Position of Total North Alwyn is attached. Figures worked out for April 2014 when the oil price was $112.63 and Gas 67.29p per Therm, and then figures worked out for today, Oil price at $59 and Gas at 53.91 per Therm. Total North Alwyn production are making the following less revenue today (provided oil price stays at $59 per barrel and Gas around 53.91pence per Therm) than they were back in April 2014 Less Revenue per day = £ 972,272.63 Less Revenue per month = £ 27,223,633.64 Less Revenue per Annum = £ 354,879,509.95
I wonder how Salmond would have explained the potential major loss in oil revenue to the Scots, had they won the Yes vote....
