Oil price: Britain’s North Sea Oil Industry ‘Close To Collapse’

We were perhaps mistaken in calling this page ‘Currency wars’ and focusing initially on American attempts to undermine Russia’s economy which is overly dependent on oil and gas. That of course is just a skirmish in a much wider economic war that is now hurting those nations that complied with Obama’s diktat and imposed economic sanctions on Russia in retaliation for Moscow’s refusal to surrender its strategically vital satellite state, Ukraine, to NATO and the EU.

Britain, because of our north sea oil interests is one of the hardest hit.

The price of crude oil began to collapse when The United states Of America, the swaggering bully of the world community decided to use its new status as a net exporter of oil, due to the shale boom, to flood world markets, finding because their oil is the most expensive to extract, that their wells were not economically viable, and damage Russia’s oil dependent economy. Naturally prices in world markets dropped due to the law of supply and demand. With typical stupid arrogance the Americans demanded that the Arabs and other traditional oil producers cut production to hold up prices.

The Arabs and other oil producing nations, sensing Amerca’s push to become gobal hegemon had run off track and what they were threatened with was the empty bluster of a bully whose cowardice and weakness has been exposed in effect said, “Fuck the fucking fuck off,” by pumping more oil and sending prices crashing even further. Result? Approximately $1trillion worth of new shale fracking projects planned in the USA have been cancelled. If it ended there the world would only have the minor problem of a US / Russia currency war.

Unfortunately the plunging oil price has brought about a “huge crisis” in energy markets, one of the worst hit is the UK’s North Sea oil industry, expert have warned. With North Sea oil now selling at below $60 a barrel, it is “almost impossible to make money”, Robin Allan, chairman of independent explorers’ association Brindex, told the BBC.

“It’s a huge crisis. This has happened before, and the industry adapts, but the adaptation is one of slashing people, slashing projects and reducing costs,” he said.

After several days of volatile trading in oil markets, Brent crude, the global benchmark, ended the day down 1 per cent at about $60 per barrel after having risen 3 per cent in early trading. In recent weeks, oil prices have crashed to their lowest levels in five-and-a-half years following falls demand due to weakening in major economies and concerns of a global oil glut.

Up to £55bn worth of North Sea oil projects scheduled for 2015 could be cancelled due to the falling prices, the Daily Telegraph reports.

Concerns over the financial state of the oil industry have increased since Opec voted not to cut production in an attempt to arrest sliding prices when they met in Vienna last month. Iran’s oil minister has publically criticised Opec’s inaction. Bijan Zanganeh told the country’s state petroleum news agency: “The prolongation of the downward trend of the oil price in world markets is a political conspiracy going to extremes.”

The US-based oil company ConocoPhillips has already moved to cut 230 out of 1,650 jobs in the UK and some analysts predict that other large firms will make similar cost-cutting announcements in the coming months.

However, the Department of Energy and Climate Change said yesterday that even though reductions in oil prices have proven “very challenging” for companies active in the North Sea, “we have seen very little evidence of new projects being cancelled or deferred in reaction to lower oil prices”.

[more]

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Duh! The Scientists Got It wrong Again – by 96% this time

When you can’t tell the difference between reality and mathematical models of reality, there’s not much chance of predicting outcomes correctly. This applies equally to economics, climate change and apparently to gas and oil extraction using fracking techniques to release hydrocarbons from bedrock.

Yes, fracking, the technology that was going to make America No 1 economic power again, kick Putin’s arse and save the Obama Presidency.

So on a day that already saw us report the government are about to court even greater unpopularity by granting exploration mandates to a bunch of corporate frackers who want to extract an estimated billion barrels of oil and gas from under the green and pleasant land of Surrey, Sussex Hampshire and Kent, we came across some news the might make the politcians wish they waited until the pointy heads had had another look at ‘the science’.

from Truth Out

Energy Information Administration officials told reporters on Wednesday that they are cutting their estimate of how much oil can be drawn out of California’s massive Monterey Shale formation by a whopping 96 percent

The news deals a serious blow to the fracking industry and has environmentalists cheering as momentum builds behind a legislative effort to put a moratorium on fracking in California. The estimate will be released publically next month, according to reports.

In 2012, the federal officials estimated that 13.7 billion barrels of oil could be recovered from the Monterey Shale. The EIA now says that only 600 million barrels of oil can be recovered using existing technologies such as acid treatment and fracking, the controversial oil and gas technique that involves forcing millions of gallons of water laced with silica and chemicals deep underground to break up rock formations.

Continue reading

Bet they wish now they had taken the trouble to collect some real world evidence rather than relying on computers and mathematics. Ninety six per-fucking-cent, WOW. That is a considerable achievement even by the standards of science tits.

Still, it does not quite surpass the dickheads who claimed a 97% consensus of climate scientists agreed the science is settled and global warming was caused entirely by CO2 from human activity. Turns out it was actually half a percent who completely agreed.

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No gas found in the Weald basin: Does this spell the end of the Government’s dream of a fracking revolution?
from The Independent

The Government’s dream of kickstarting a fracking revolution has suffered a major setback after a survey of one of the UK’s great shale gas hopes found no evidence of gas in the area.

And while the same survey – of the Weald basin, stretching from Wiltshire to Kent – did find an estimated 4.4 billion barrels of oil, the scientist who oversaw the project admitted it would be so difficult to extract that the basin would be unlikely to yield even 0.5 per cent of the oil so far extracted from the North Sea.

Robert Gatliff, director of energy and marine geoscience at the British Geological Survey, which produced the report, said: “It’s not a huge bonanza. But we have to see what happens.” He added: “It is going to be a challenge for the industry to get it out.”’

Continue reading

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Britain’s maths policy simply doesn’t add up – but neither does overestimating the importance of maths.

Paterson To Frack Off? Another triumph For Boggart Blog?

A couple of weeks ago we reported the story of the Coalition government’s environment secretary Owen Paterson and his troubles with voters in his constituency which lies in Shropshire’s green and pleasant land. Mr. Paterson you see is a big fan of fracking. And his constituents in the sleepy hamlets where the pace of life is still gentle and every man is his own uncle, are no so keen on the extraction of gas from bedrock under the fields and meadows that have been the bedrock of the local economy since the time of King Offa and his dike.

I’m not casting aspersions at the lovely wife of King Offa of course, his dike was a great earthwork that served the purpose of keeping out the Welsh. Locals however, huddling in the tap rooms of their villsge inns are muttering while holding their Shropshire Lass close … or holding their Shropshire Lad close if they prefer a darker beer (what did you think I was talking about) that it’s time King Offa returned to drive out the frackers who are ruining the countryside.

There seems to e some suspicion that the local MP, the aforementioned Paterson has financial links to the evil frackers who want to interfere with the bedrock. And that is making him very unpopular since boggart Blog highlighted it.

Now we learn from The Tap:

Rumour – Is Paterson about to resign as MP?No sooner has The Tap Blog started campaigning for an end of Owen Paterson as the MP for Shropshire North, and rumours are circulating of his imminent resignation.

Some of you might have noticed the bookies have him posted as 5 to 1 to be appointed the next European Commissioner. Then a little bird told me yesterday he’s spending his days sitting in his office hiding away from his constituents knowing how angry they all are with his useful idiot support for fracking their lands and homes.

At the same time, Chinese-CNOOC-owned Dart Energy representatives probe the local area looking for anyone dumb enough to sign a contract with them to allow their land to be fracked. Dart Energy leaflets can be found on local traders’ counters hoping there are yet more mugs willing to have their farms destroyed, their homes made valueless and their relatives and animals made ill.

It’s only a hunch, but given the enormous stench arising in Owen Paterson’s constituency as his constituents finally realise that, after twenty years building their trust, he’s sold them all down the river, I would say he’s desperate for a life boat to come and sail him away. Continue reading

As yet this is only a rumour, but as soon as Guido Fawkes has the full story I’ll let you know. but fingers crossed, the scadal could break before the elections which will really be fun. And good for UKIP and the Pirate Party of course.

BTW I’m not against fracking in principle, there is a lot of scaremongering going on from the same people who are scaremongering about climate change, nuclear power, pandemics of imaginary illnesses, UKIP and all the rest. What I’m a gainst in principle is re sponsible ministerswhose family members are directors of fracking firms not declaring a conflict of interest and fracking off to another government department.

Too Fracking Cosy

Owen Paterson is Secretary of State for the Environment in the Coalition government. Owen Paterson’s brother-in-law is Viscount Matt Ridley who is, I believe, the nephew of the Nick Ridley who was a minister in Margaret Thatcher’s government. He is also a former CEO of Northern Rock Bank, which kicked off the credit crinch when it failed in 2007. Ridley is the main quoted ‘expert’ and media proponent of fracking in Britain. Ridley has financial links with companies that are involved in fracking.

owen paterson
Owen Paterson: fracking bastard

Owen Paterson is entirely in favour of fracking, to the extent that he won’t even discuss the subject with his constituents and near neighbours who are directly affected by fracking proposals. There have been rumours that land owned by Paterson lies above bedrock rich in shale gas but I have not been able to confirm this.

Though the long term effects of fracking are not clear, experience in the UK, Australia and the USA shows that when frackers move into an area, residents fuck off (if they can afford to). House prices tumble and various problems result in forcing water into the bed rock at high pressure.

In spite of serious concerns about the effects of fracking, current law makes no provision for property owners to be compensated if their assets are damaged by fracking operations.

Nice to know the people in power are so crystal clear about whose interests they should be looking after.

Owen Twaterson Must Go

E Bomb? Putin Has Obama Over A Fracking Barrel Again

putin responds to obama
Putin Responds To Obama’s Latest Ultiumatum. Source

In the wake of Barack Obama’s latest complete humiliation at the hands of Vladimir Putin as the Ukraine crisis drags on, mainstream media in the west has continues to provide The Rent Boy President with the journalistic equivalent og Immaculate Body Service (look it up if you must, but not on a full stomach 😀 )

Take this article by Fraser Nelson in The Daily Telegraph for example:

For decades it has seemed as if God has played a great joke on mankind, granting the best fuel reserves to the worst places. Iran, Russia, Saudi Arabia, Turkmenistan [ … ]– As Vladimir Putin has found, if you own the gas which the rich world needs, then you can get away with murder.

Europe is a recession-struck continent dependent on a Kremlin-controlled energy price. Putin cleverly cut Gazprom tariffs to the region last year, ramping up its dependence on Russian gas to record levels. And in so doing, he effectively bought EU foreign policy.

He’d find it harder to buy America’s nowadays. As Barack Obama considers his options, he has a substantial new weapon that he is not sure how to deploy. In the last few years, the shale revolution has utterly transformed America’s energy fortunes. (Read all)

Poor little Fraser, even if his belief in shale were justified, he assumes Obama would have the nous or the balls to use America’s mythical abundance of gas to outmanoeuvre Putin.

Meanwhile, in a rare attack of journalistic integrity, Huffington Post reported this:

Deepening Doubts About Fracked Shale Gas Wells’ Long Term Prospects”

“The oil and gas industry has propagated a vision that fracking unleashes vast amounts of gas which then flows relatively steadily for decades. But a growing mountain of evidence suggests that nothing could be further from the truth. Shale gas wells dry up, sometimes long before they have produced enough gas to cover the costs of drilling and fracking them.”

In the oldest shale formation, Texas’s Barnett shale, many aging wells have had to be re-fracked multiple times to keep them from runningdry. Re-fracking costs millions of dollars and requires millions of gallons of water.

A review last year by the New York Times found that less than ten percent of 9,000 Texas shale wells had recouped their estimated production costs within their first seven years.

Continue reading at Huffington Post

Added to that, there is a huge body of opposition to fracking building up in the USA, with many far fetched horror stories about blazing rap water and awakening demons being given credibility.

The economic letown will be the deal breaker of course, when shale gas turns out to be no more viable a solution for our energy needs than windmills, a lot of people are going to lose a lot of money.

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Was The Flooding Of The Somerset Levels Deliberate?

When Chris Smith, former Labour minister and now head of the Environment Agency, arrived on the Somerset Levels, severely affected by flooding for several weeks, few people turned out to welcome him. Was this because the good people of Somerset were so pised off with The Environment Agency, you might well ask. Apparently not, it turns out Smith didn’t let anyone know exactly where he planned to arrive or when.

MP Ian Liddell-Grainger, Conservative – Bridgewater and West Somerset, was furious when he spoke about it to BBC News:

“I will tell him what I bloody well think of him – he should go, he should walk. I’m livid. This little git has never even been on the telephone to me. When I find out where he is, I will give it to him. He has not told the local MPs, the local council or the local press where he is going to be,” stormed Liddell – Granger.

pickles-the-huttDue to the indifference shown by Environment Agency chief Chis Smith, Communities Minister Eric Pickles (above) had to apologise on behalf of government to Somerset Levels residents.

This failure to even contact the constituency MP and local authority officials is typical of the high handed and authoritarian response to this crisis. And it gives us grounds to suspect the whole thing was anticipated and is being used for political reasons, to shore up the discredited attempts to use climate change in order to spread enough fear and panic to soften us up for punitive taxes on carbon based fuels.

Even for the New World Order deniers who cling to a belief that all the recent stormy weather is ‘an act of God’ (in insurance terms) – rather than an act of HAARP – there is one inescapable smoking gun. You don’t have to be a conspiracy theorist, because in this case the records of government consultations and EU Directives are a matter of public record, the flooding of the Somerset Levels is largely due to a deliberate run-down of the necessary maintenance to drainage infrastructure which is required for geo-engineered land.

The neglect of river dredging, and other land maintenance work needed for adequate drainage in areas where natural drainage has been disrupted by building, planting of huge concrete rafts as foundations for wind turbines and removal of peat beds for commercial reasons has been carried out in line with EU policy which in turn is part of with UN Agenda 21, a global fascist program designed to move people out of the countryside and into the cities, because of course, people and ancient villages get in the way of modern intensive farming techniques. .

What will happen next? My guess is that the banksters, who hold mortgages and secured loans on most farm land and so get first bite at the cherry will move to buy land in the levels at give away prices when farmers are forced to sell because the land contaminated from overflowing raw sewerage is unuseable for food crops for a number of years. The banksters will then sell on that land on to gas extraction firms for fracking, as the area stands over a huge shale gas field which they’ve been itching to get their hands on.

And now you have read this, it all makes sense doesn’t it? Even the HAARP deniers have to agree that the banksters are known for playing the long game. And it was inevitable that even without assistance from the

High Frequency Active Auroral Research Program

flooding due to freak weather was bound to occur sooner or later.

HAARP note: Though I do not believe all the things HAARP is said to be capable of are realistic (mind control for example – though low frequency emissions can cause depression) weather control technology has been a goal of the US Government Defense Advanced Research Projects Agency (DARPA) since the 1950s

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