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”.

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Dave Surprised By Price Fixing? Yeah right.

News today that petrol prices to consumers have been driven up by price fixing deals cut between members of the Big Oil price fixing cartel only came as a surprise to one person.

While David (call me Twat) Cameron is away putting the world to rights and helping Barack Obama piss off Russia and China and start World War 3, a Downing Street official, speaking on the Prime Minister’s behalf said Mr. Cameron is surprised, shocked and very deeply concerned by the allegations that prices prices may have been driven up by oil companies rigging the market.

If you are anything like sane your first reaction will have been, “Shocked? By crooked corporation making price fixing deals, what planet does he live on>”

Boggart Blog can reveal however that Cammers along with parliamentary colleagues from all parties is not shocked that big corporations are capable of such malfeasance or that politicians are willing to turn a blind eye but that members of the public are savvy enough to see through the lies and propaganda and work out what has been going on.

Two views from mainstream media:
Cameron deeply concerned by petrol price fixing – Daily Telegraph

Shell and BP raided over price fixing allegations – The Independent

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Minimum Alcohol Pricing? One Rule For Us, another For …

You’ve heard all the finger wagging, Nanny state loving MPs and ministers screaming about the evils of binge drinking and how we need minimum per unit prices for alcohol to prevent ‘the poor’ seeking solace in alcoholic oblivion. MPs, ‘health experts’ and sociologists have for several years been pushing a campaign to stop supermarkets selling cut price booze.

As usual the hypocritical shits are not willing to lead by example. With the mouth on one face they may be claiming the moral high ground by prating about the demon drink. With the mouth on the other they are calling for the already cut price booze sold in the bars at the Palace Of Westminster to be made even cheaper.

Despite prices for alcohol being kept cheaper than a nearby Wetherspoons pub at the four Palace of Westminster bars, MPs have suggested Parliamentary prices should not be linked to pubs in central London. Instead they claim the price of a pint should be linked to that in the Jarrow and Hebburn Welders and Riveters club.

At the moment prices are kept lower, than a nearby Wetherspoons in Victoria Street, with pints of John Smith’s bitter costing £2.60 and Becks lager £3.20 – cheaper than many London pubs but still dearer than most northern working men’s clubs.

Senior Back Bencher Rupert Fatte – Bastard (Con. Poshington) said, “People are always complaining that MPs are our of touch with the ordinary voter, well how can we be in touch with ordinary voters when we have to pay the same for a pint as City Bankers, Mwah ha ha!”

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The transparency of British Gas.

After many complaints the utilities regulators have told energy companies they must be more transparent about how their prices are formulated.

If this criticism includes my gas supplier I think it is totally unfair. Those theiving scumbags extremely nice people at British Gas wrote me a very polite letter explaining that they must put up my gas prices by 18% in August because of increases in wholsale prices of gas. Now my instant and I have to say unworthy reaction was to shout “the lying gobshites, wholesale prices have gone down recently.”

The morons efficient staff at B(friendly)G were ahead of me however. They explained that they have to buy gas in advance to secure supplies so the prices they are talking about were for gas they bought yonks ago when the market peaked.

“What kind of cupid stunt do they think I am?” I asked, rhetorically.

Mrs. T who is always telling me off for being rude and abrasive when dealing with civil servants, utility company staff and any other jobsworths I encounter persuaded me not to phone the CEO of B friendly G and tell him what I thought of the shoddy, money grubbing efficient, customer oriented operation he runs. She said I would only end up getting angrier because I cannot punch people down a phone line. She also persuaded me not to write to the papers and insult everyone working for British Gas they are ordinary, hard working folk and are doing their absolute best even if the result is not very good by real world standards … and at least they had taken the trouble to write.

Then to reinforce her calm tolerant approach she said, “Look, they are even giving us a chance to peg our price against further increases, if we pay an extra five percent on top of the new price after the increase they will guarantee to hold that price for two years.”

This is very generous of them as there is no way a major gas supplier could know gas prices are expected to fall in the remainder of this year.

My wife is a wonderfully kind person and her generosity of spirit knows no bounds. She has made me see it would have been totally unreasonable of me to call the management team at BG a bunch of crooked, lying, scum sucking offspring of a pustulating pox whore’s scrofulous scablouse and they could take their price cap and fuck the fucking fuck off. After all they are clearly working very hard at being more transparent about their pricing structure and it has to be said, they are succeeding. I saw through this latest scam straight away.

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Pea in man’s lung shows how to beat the recession by growing food inside your body

With food price inflation worrying many households in these austere time we were drawn to a story that broke yesterday about a man who grew a pea plant in his lung. This could offer hope to families on a tight budget who are trying to cope with rising prices.

Now we have heard stories of seeds sprouting inside people’s bodies before and always dismissed them as urban myths. And who as a child was not told by their mother, “There’s enough muck behind your ears to grow potatoes.”

Well potatoes are not ideal for lungs, they need lots of light and a good depth of soil to flourish. Perhaps planting potatoes in the digestive tract, equally warm and moist, with light entering through the mouth and lots of good rich compost at the lower levels might give better results. Peas and beans should be planted between the toes so they can wrap their tendrils around leg hair as they start to climb.

Another candidate for body cavity cultivation is rhubarb. The forced variety which produces tender pink stalks does best in warm, moist, dark conditions. That a suitable orifice exists on the female body could give a whole new meaning to the phrase “rhubarb triangle.”

People wanting to get really serious about intra – corporeal horticulture and raise a cash crop to supplement the family income should look no further than Cannabis. Think about it, the plant grows almost anywhere in any conditions, it can be harvested several times a year and any Afghan black you get hold of these days is likely to come into the country up somebody’s arse.

Cut out the middle man, reduce the air miles, help the planet and get yourself a decent smoke. All you need to do is swallow some seeds and a UV torch.

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Rack and Ruination Beckons With The 99p Pint

Now doesn’t this sound like the sort of thing that politicians ought to be applauding?
Weatherspoon’s pub chain have decided to sell a particular brand of real ale at 99p per pint, in an effort to get the punters into their pubs.

The ale in question is 3.4%abv, so you’re going to have to get through a fair few to get a bit tiddly, and indeed, despite not having any personal experience of this as I’m far too old to frequent the sort of places where it goes on, I’m quite sure that the dreaded binge drinkers are not drinking 3.4%abv real ale, it’s more a pint of Stella with a tequila chaser, or maybe a pint of tequila with a Stella chaser, if you want to accelerate the road to oblivion.

But no. Yesterday on Jeremy Vine, well you’ve got to do something for a laugh when you’re in the car, George Galloway was denouncing the move as the most irresponsible thing ever to have occured in the history of man and he is quite sure that soon the high streets of Britain will be overflowing with semi-alcoholics, putting windows out, urinating on babies and OAPs and spewing their guts up into the nearest waste bin, as they’ve happily got wasted on eleventeen pints of 99p IPA.
Get a life, George.

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Catch 22 Revisited: Food and fuel price inflation a political hot potato

As the blip turns into recession and hurtles onward to depression all sorts of experts are predicting all sorts of consequences, job losses, home repossessions, bankruptcies and an increase in mental health problems. And of course the reappearance of Catch – 22

Joseph Heller’s Catch – 22 was one of my favourite books ever in fact I am rereading it at the moment. The title, Catch – 22 represents the ultimate betrayal of frail humanity by the cold indifference of fate, it is whatever keeps us trapped within lousy situations. There are many variations then, depending on one’s circumstances. In the book theCatch-22 that traps World War 2 bomber crews lies in the fact that the only way to get out of flying more bombing missions over enemy territory is to ask to be taken off combat duty because one is crazy. However applying to be taken off combat missions proves one is not crazy and so not eligible to be taken off combat duty.

Catch – 22 crops up in all walks of life.

One of its latest manifestations cropped up on television yesterday. A penny-pinching expert was talking about how hard hit poorer people will be by the inflation that will inevitably follow the financial crisis. Many people will find themselves having to choose between buying food and heating their homes as they don’t have enough money to for both. He recommended abandoning expensive convenience foods and getting into wholesome, old fashioned home cooking. This part of the item continued with a very unscientific survey of cooking ability; a reporter in a busy street stopping people at random, sticking a mic. in their face and asking about their cooking skills. It seems an alarming number of people under 35 cannot cook a baked potato.

I though the whole piece was heartless, insensitive and not politically correct. The producers had forgotten Catch – 22. If you buy potatoes you will certainly be unable to afford to heat the oven for baking them but if you save your money for gas or electricity bills you will have no potatoes to bake.

Life’s a bitch as they say.

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No web tour today, just a couple of links:
Recession Depression

Recession economics explained