Oil price: North Sea oil fields 'close to collapse'

[bemildred]

The tumbling oil price has brought about a "huge crisis" for the UK's North Sea oil industry, an expert has warned.

With oil prices now below $60 a barrel, it is "almost impossible to make money", Robin Allan, the chairman of the 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.

The announcement came after a volatile day of trading. Brent crude, the global benchmark, ended the day down 1 per cent at about $60 per barrel after having risen by as much as 3 per cent in intraday trading.

http://www.theweek.co.uk/business/oil-price/60838/oil-price-north-sea-oil-fields-close-to-collapse

[newfie11]

1. Great news! Nt

[tularetom]

2. How far down does the price have to go

Before the Keystone pipeline becomes unfeasible?

[bemildred]

3. Sixty or seventy dollars/bbl is what I hear.

I am hearing $40/bbl is not out of the question. It seems to be around $56 at the moment.

[bemildred]

4. Frankly, my dear, I don’t give a damn: oil and Libya this week

Last edited Fri Dec 19, 2014, 02:56 PM - Edit history (1)

It was supposed to be one of the few things that could stop oil prices from falling further: a major producer in the Middle East closing oil export terminals due to heavy fighting in the area.

Last weekend Libya’s state-owned National Oil Corporation declared force majeure from Ras Lanuf and Es Sider, two ports in the eastern part of the country with a combined capacity of 560,000 barrels per day.

What was the response by oil traders? Not much. On Monday, Brent futures dropped 79 cents.

The kind of rally you might expect out of a supply disruption came two days later when Brent futures gained around $3 in a matter of minutes at noontime in New York.

http://blogs.platts.com/2014/12/19/libya-oil-price/