View Full Version : NS Heli Demand / PRT Abolishment
Having previously discussed the impact of the sale of BP 40's and speculation over their other mature assets, the industry has been handed a tax cut from Gordon Brown in his latest budget.
With PRT being abolished, on new contracts using existing pipelines and infrastructure, several industry analysts are forecasting an increase in investment. This will result in marginal undeveloped discoveries becoming economically viable.
Good news all around I would say, as this should extend / augment activity within the province. Must be good news for Bristows / CHC / Bond??
Hummingfrog
18th Apr 2003, 17:38
Ah No:confused:
Scotia are in the process of making pilots redundant - numbers unknown but 15+. Oil companies predicting downturn in flying activity especially out of Aberdeen so anybody looking to break into offshore oil support will have to wait some time before there is any recruiting.
HF
HF
Agreed - immediate / short term situation is bad. All service companies are feeling the pinch. I don't know why the operators are moaning as they have been rolling in it for the last twelve months with the high oil price. In addition, where possible, they have been accelerating production to take advantage of the high price. Oh, but I hear them cry, we're skint because G Brown nabbed another 10% from us last year and we're still paying for that today. B*lls**t.
BUT....the incentives to ensure longer term sustainment, or for new players to enter the arena are now appearing. Is this not providing any optimism?
I know the current situation is bad and perhpas the tone of my first post was not quite right considering the CHC situation, but I was trying to address the sustainability of the UKCS as a whole, because this will have an effect on future pilot and training requirements.
Buitenzorg
19th Apr 2003, 01:44
I doubt very much there'll be significant investment in the North Sea for several years at least.
Reason: Iraq coming back on stream. The enormous fields are there, producing very high quality (light) crude. Yes, they'll need serious maintenance, but it will still be cheaper than investing in such an environmentally difficult area as the North Sea.
With Iraqi wells pumping like there's no tomorrow to pay for the reconstruction of the country, crude prices will fall, and investment in the North Sea will not make sense, financially. The only advantage to the North Sea, from the oil companies' point of view, is the political stability.
Buitenzorg:
Not so sure about prices sliding by much as OPEC will undoubtedly control output and seek to maintain prices at a moderate level. As I read it, they are coming under pressure to reduce output to prevent the very scenario dexcribed above.
Buitenzorg
22nd Apr 2003, 02:19
GJB
You are probably correct. However, the uncertainty is always there, and what's certain is that exploration and production in the North Sea will always be very expensive. Before making investment decisions of these magnitudes, executives will no doubt want to be reassured on certain questions, such as:
What role is the US going to play in the Iraqi government? For how long? Will the new Iraqi government even remain in OPEC?
So for the foreseeable future I expect a wait-and-see attitude from the oil companies.