ABERDEEN
Join Date: Oct 2012
Location: The Midlands
Posts: 178
Likes: 0
Received 0 Likes
on
0 Posts
What price does oil need to fall to before investment in the North Sea reaches bottom and Aberdeen no longer becomes an oil hub?
As I understand the North sea has some of the highest costs for oil extraction and also some of the largest wages with 400,000 employed in the UK industry.
With the price at a 5 year low and continuing to fall there must be a point where the companies in the north east say enough is enough?
I'm guessing there would be a lot of worried people in Aberdeen right now
As I understand the North sea has some of the highest costs for oil extraction and also some of the largest wages with 400,000 employed in the UK industry.
With the price at a 5 year low and continuing to fall there must be a point where the companies in the north east say enough is enough?
I'm guessing there would be a lot of worried people in Aberdeen right now
Last edited by ANYWHERE BUT ABZ; 6th Jan 2015 at 18:27.
Fit like min?
Join Date: Nov 2004
Location: ...
Posts: 2,126
Likes: 0
Received 0 Likes
on
0 Posts
Inter-Scottish links to GLA/EDI?
Bid to restore Scots inter-city flight network - The Scotsman
Would need a substantial Govt subsidy I would have thought - in an age of austerity. Although with the current cheap price of oil you never know.
Interesting to see if anything comes of it for either ABZ or INV.
Would need a substantial Govt subsidy I would have thought - in an age of austerity. Although with the current cheap price of oil you never know.
Interesting to see if anything comes of it for either ABZ or INV.
Join Date: Mar 2008
Location: LV
Posts: 2,296
Likes: 0
Received 0 Likes
on
0 Posts
Yip as good ol' Hans Knees comments on the article (yes we all know who the EDI blinkered Fanboi is) - this is a nonnstarter. Just watch the Flybe 'hop on hop off' experiment get quietly dropped.
Fit like min?
Join Date: Nov 2004
Location: ...
Posts: 2,126
Likes: 0
Received 0 Likes
on
0 Posts
To be honest I think Flyshuttle would have struggled in the good times up here - but in an era where the price that determines our main - only - industry has gone into meltdown? Even less chance.
There just isn't sufficient demand to travel on schedules to far off Aberdeen from large swathes of the UK & Europe, boom times or not, to an area with itself a low catchment area to start with.
People have a very negative perception about Aberdeen in the main - sometimes justifiably so when I see the incompetence of the local political classes over the years.
000s of job losses in another area would have the politicians falling over themselves to throw money & help at the area. 000s of job losses up here & offshore will be greeted with a shrug.
There just isn't sufficient demand to travel on schedules to far off Aberdeen from large swathes of the UK & Europe, boom times or not, to an area with itself a low catchment area to start with.
People have a very negative perception about Aberdeen in the main - sometimes justifiably so when I see the incompetence of the local political classes over the years.
000s of job losses in another area would have the politicians falling over themselves to throw money & help at the area. 000s of job losses up here & offshore will be greeted with a shrug.
Join Date: Apr 2010
Location: London
Posts: 7,072
Likes: 0
Received 0 Likes
on
0 Posts
ABA - it isn't as simple as low price = total collapse
there are a lot of fields where the Finding and development cost (F&D) and the CAPEX is long paid for so you are only looking at the Operatign costs (OPEX) - and even then you can run at a notional loss for while as you don't want to pay the Abandonment costs
The problem for the UKCS is that development cost have gone through the roof at the same time as the size of fields being found has gone the other way - these days 20 mm bbl recoverable is a good find whereas 15 years ago people were sniffy about 100 mm bbl
regretfully the oil business fires people to show that they are still managing the situation even tho people costs are insignificant really
So you lay off people, you stop investing in new projects, you shelve projects that aren't too far along. You really sweat the production you have, you pressure the contractors and suppliers to cut their costs
You try and stave off any re-financing, you sell "non-core" assets at a discount for the cash. You don't hire, you don't move into large smart offices, you make everyone travel economy
So it isn't total melt-down - just a large blow to cash flow, quite a few people out of jobs and expectations for expansion shoved in the bin for 2-4 years
there are a lot of fields where the Finding and development cost (F&D) and the CAPEX is long paid for so you are only looking at the Operatign costs (OPEX) - and even then you can run at a notional loss for while as you don't want to pay the Abandonment costs
The problem for the UKCS is that development cost have gone through the roof at the same time as the size of fields being found has gone the other way - these days 20 mm bbl recoverable is a good find whereas 15 years ago people were sniffy about 100 mm bbl
regretfully the oil business fires people to show that they are still managing the situation even tho people costs are insignificant really
So you lay off people, you stop investing in new projects, you shelve projects that aren't too far along. You really sweat the production you have, you pressure the contractors and suppliers to cut their costs
You try and stave off any re-financing, you sell "non-core" assets at a discount for the cash. You don't hire, you don't move into large smart offices, you make everyone travel economy
So it isn't total melt-down - just a large blow to cash flow, quite a few people out of jobs and expectations for expansion shoved in the bin for 2-4 years
Join Date: May 2002
Location: SW Scotland
Age: 40
Posts: 413
Likes: 0
Received 0 Likes
on
0 Posts
It's not very often I agree with the greens, but I can't help but feel improved rail links would be a much better option than flights between INV/ABZ and GLA/EDI.
Bring back the plans for a rail interchange at EDI, and look at improving the rail lines between Edinburgh and Aberdeen rather than subsidising flights between the two. There will be far more benefit from an improved rail network, than from a few connecting flights.
Bring back the plans for a rail interchange at EDI, and look at improving the rail lines between Edinburgh and Aberdeen rather than subsidising flights between the two. There will be far more benefit from an improved rail network, than from a few connecting flights.
Fit like min?
Join Date: Nov 2004
Location: ...
Posts: 2,126
Likes: 0
Received 0 Likes
on
0 Posts
Wizz
Aberdeen Airport: Welcome to Aberdeen Airport | Parking
^ Airport press release.
Just in time to take all the unemployed oil workers to drown their sorrows...
^ Airport press release.
Just in time to take all the unemployed oil workers to drown their sorrows...
Join Date: Jan 2012
Location: Aberdeen
Posts: 430
Likes: 0
Received 0 Likes
on
0 Posts
Speaking if Eastern Europe... how is Riga doing?
I think with hindsight ABZ-RIX could work with the right carrier and that probably isn't AirBaltic with their ageing, inefficient 737-500's. The route didn't die a death due to poor loads (well over a 100 in June/July iirc) but presumably due to the yields. Business class was reported as being empty on several occasions by users on here.
Wizz Air totally different to BT, and far more suited to the type of pax who will be using the service. Low cost base, low fares, far better aircraft for the job. Will just need to see if the A320 can be filled. Oh, and Wizz are starting to build themselves up across in RIX.
Fit like min?
Join Date: Nov 2004
Location: ...
Posts: 2,126
Likes: 0
Received 0 Likes
on
0 Posts
Well Gdansk was on the ABZ route 'wish list' so we'll see if it is used by the Polish population here (which I believe is still considerable) & the local populous generally.
Nice to see Wizz on the radar. I wonder how long negotiations took - did they start when oil prices were high (good for this area's economy, bad for airlines fuel prices) or are they recent negotiations with the oil prices low (bad for this area's economy, good for airline fuel prices)?
Maybe the new airport management are changing tack & accepting they have to be flexible & deal with proper locos & not just to focus on business routes/pax given the oil downturn.
We have easyjet trying Geneva & now this summer Wizz to Gdansk. What price Ryanair returning to ABZ on a couple of routes given they are at GLA? Same airport owners of course.
It was a pity about Riga but airBaltic did have a market for it - just not the market they were after. They wanted the business transfer traffic to link to their Baku route but as AZAL found with their brave more direct approach, there was not sufficient business traffic (or not enough prepared to switch from connecting through LHR & the like).
Nice to see Wizz on the radar. I wonder how long negotiations took - did they start when oil prices were high (good for this area's economy, bad for airlines fuel prices) or are they recent negotiations with the oil prices low (bad for this area's economy, good for airline fuel prices)?
Maybe the new airport management are changing tack & accepting they have to be flexible & deal with proper locos & not just to focus on business routes/pax given the oil downturn.
We have easyjet trying Geneva & now this summer Wizz to Gdansk. What price Ryanair returning to ABZ on a couple of routes given they are at GLA? Same airport owners of course.
It was a pity about Riga but airBaltic did have a market for it - just not the market they were after. They wanted the business transfer traffic to link to their Baku route but as AZAL found with their brave more direct approach, there was not sufficient business traffic (or not enough prepared to switch from connecting through LHR & the like).
Fit like min?
Join Date: Nov 2004
Location: ...
Posts: 2,126
Likes: 0
Received 0 Likes
on
0 Posts
NHV move forward & lodge plans
I see NHV are pressing ahead with an ABZ base, despite the oil downturn, taking it to the next stage of lodging proposals.
* up to 30 new jobs
* purchase of Arctic House (Kirkton Rd Dyce) with moves proposed to extend the building to form a new helicopter hangar
* existing offices to house engineering personnel
* 4 helicopters proposed, including EC (Airbus) 175
Next part (transport statement):
* 48 pax departing on 3 flights 6am - 8am each weekday (ie. M - F)
* One flight is expected to arrive & another depart between 8am - 4pm
* Between 4pm - 6pm another 16pax expected to arrive and depart from the facility
NHV must be condident of securing contracts (despite the downturn there are still one or two new projects out there, principally Statoil Mariner).
[Source: EE]
* up to 30 new jobs
* purchase of Arctic House (Kirkton Rd Dyce) with moves proposed to extend the building to form a new helicopter hangar
* existing offices to house engineering personnel
* 4 helicopters proposed, including EC (Airbus) 175
Next part (transport statement):
* 48 pax departing on 3 flights 6am - 8am each weekday (ie. M - F)
* One flight is expected to arrive & another depart between 8am - 4pm
* Between 4pm - 6pm another 16pax expected to arrive and depart from the facility
NHV must be condident of securing contracts (despite the downturn there are still one or two new projects out there, principally Statoil Mariner).
[Source: EE]
Fit like min?
Join Date: Nov 2004
Location: ...
Posts: 2,126
Likes: 0
Received 0 Likes
on
0 Posts
Lapland 2015
Aberdeen airport announces new route ... to visit Santa in Lapland - Local / News / Evening Express
I have in the past banged on about the lack of a Santa flight from ABZ when just about every other airport has at least one.
Looks like it's been rectified at least for this year via Transun.
I have in the past banged on about the lack of a Santa flight from ABZ when just about every other airport has at least one.
Looks like it's been rectified at least for this year via Transun.
Join Date: Jan 2015
Location: Europe
Posts: 111
Likes: 0
Received 0 Likes
on
0 Posts
NHV have been talking about this for over 6 months:
Offshore operator NHV seeks foothold in Aberdeen as first venture with Blueway
Offshore operator NHV seeks foothold in Aberdeen as first venture with Blueway
Join Date: Jan 2012
Location: Aberdeen
Posts: 430
Likes: 0
Received 0 Likes
on
0 Posts
Flybe
I wonder what they have planned with the four aircraft base.
Going well so far. Not.
Currently M-F:
MAN: Reduced from 6x Daily to 5x Daily
BHX: Reduced from 4x Daily to 3x Daily
BHD: Still 1x Daily
LCY: 3x Daily Dash
FlyShuttle: 3x Daily Dash
BHX appears to be on a BHX based aircraft and surprising to see it being chopped down considering the growth in the last year with minimal increase in capacity?
Going well so far. Not.
Currently M-F:
MAN: Reduced from 6x Daily to 5x Daily
BHX: Reduced from 4x Daily to 3x Daily
BHD: Still 1x Daily
LCY: 3x Daily Dash
FlyShuttle: 3x Daily Dash
BHX appears to be on a BHX based aircraft and surprising to see it being chopped down considering the growth in the last year with minimal increase in capacity?