Surviving the oil slump
I was chatting to a crane operator one day before flying him offshore to work. He was asking about salaries. Turns out he was on £20k a year exactly more than I was, I was a chc co-pilot. 
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Claimed by The Economist that break even for a barrel in the UK is 60$ is pure nonsense, and Nigeria 65-68 is rediculous unless it icludes several other factors like eg. tax.
Back in 98-99 the price was around 10-14$/barrel still everybody working in the branch were earning well.
Could be slightly higher than 7-9 but we are not even close to 20$ in the NS.
Back in 98-99 the price was around 10-14$/barrel still everybody working in the branch were earning well.
Could be slightly higher than 7-9 but we are not even close to 20$ in the NS.
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Where on earth does Tango 123 get his figures from? Maybe he's listening to the voices in his head? 
According to the FT, oil production costs per barrel in the North Sea have risen by 300% in the last 15 years and it now costs around $18 per barrel to lift.
To quote from the McKinsey report of 2014
Decommissioning costs are increasing in a time of decreasing profits:
Low Oil Prices Throw Nort Sea into a Period of Crisis
If Iranian oil comes onto the market in the next 6 months as widely predicted, this will probably lead to an oil war between them and the Saudis, which will drive oil down to around $20 a barrel or even lower.
According to the FT, oil production costs per barrel in the North Sea have risen by 300% in the last 15 years and it now costs around $18 per barrel to lift.
To quote from the McKinsey report of 2014
North Sea oil and gas costs have risen faster than any other industrial sector in the region, causing projects to be shelved and activity postponed, and challenging the long-term viability of existing fields and infrastructure.
Low Oil Prices Throw Nort Sea into a Period of Crisis
If Iranian oil comes onto the market in the next 6 months as widely predicted, this will probably lead to an oil war between them and the Saudis, which will drive oil down to around $20 a barrel or even lower.
Got it in one Phone.
Plus, quoting figures which don't have tax is pointless unless the lack of tax is acknowledged. Taxes and royalties are the rewards to the government (and the people they serve) for letting companies drill and extract oil. It is utterly pointless just to quote the extraction cost without taxes as without the taxes you cannot extract.
Below a 2015 report containing data from the egg heads at Morgan Stanley quoting UK costs in 2014 for a barrel excluding any taxes at $30.
http://www.petroleumworld.com/pdf/Morgan2015.pdf
Some of the opinions on future price direction are laughably wrong of course, but their data source is the same as the one I quoted above, also used by the Economist. I think it's fairly safe.
Plus, quoting figures which don't have tax is pointless unless the lack of tax is acknowledged. Taxes and royalties are the rewards to the government (and the people they serve) for letting companies drill and extract oil. It is utterly pointless just to quote the extraction cost without taxes as without the taxes you cannot extract.
Below a 2015 report containing data from the egg heads at Morgan Stanley quoting UK costs in 2014 for a barrel excluding any taxes at $30.
http://www.petroleumworld.com/pdf/Morgan2015.pdf
Some of the opinions on future price direction are laughably wrong of course, but their data source is the same as the one I quoted above, also used by the Economist. I think it's fairly safe.
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nowhere, I personally believe that tax can go as low as 0, if the oilprice keeps dropping. Simply to keep the production going. Again, it is a national security Q, too important to let in the hands of the Sauds and other 3. world countries.
The oil companys have an interest in stating that the production pr. barrel is high, when (re)negotiating with the state, to put a pressure on for a low tax. That is why it is not possible to get an excact figure. The only thing for sure is, when there is no money in it, then the operators are out - which is the fact for most US fracking companies.
Enough said on this subject....
The oil companys have an interest in stating that the production pr. barrel is high, when (re)negotiating with the state, to put a pressure on for a low tax. That is why it is not possible to get an excact figure. The only thing for sure is, when there is no money in it, then the operators are out - which is the fact for most US fracking companies.
Enough said on this subject....
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Tango 123 is obviously sadly deluded. Why on earth would NS oil be a national security question? This is something more akin to the response to the GMB union. Our coal industry has been allowed to go into decline because cheaper sources are available. Amongst non Third-world countries which are in the top-ten oil exporters are Norway, USA and Canada as well as our former colony of Nigeria with which we have a close commercial relationship. As for reducing the rate of tax to 10% that's laughable. Oil and gas exploration already attracts research and development allowances which allow for 100% write off of the expenditure for tax purposes.
Many NS oil fields are already reaching the end of their viability and the oil companies only keep them operating on a "use it or lose it" basis because of the huge costs of decommissioning them.
The Government is already making a loss from North Sea oil and gas because revenues are presently more than cancelled out by repayments to producers, leaving the Government's North Sea accounts £39million in the red between April and September of 2015, according to HMRC figures, which is thought to be the first time the UK has recorded a loss over a six month period since the North Sea oil industry became established 40 years ago.
Many NS oil fields are already reaching the end of their viability and the oil companies only keep them operating on a "use it or lose it" basis because of the huge costs of decommissioning them.
The Government is already making a loss from North Sea oil and gas because revenues are presently more than cancelled out by repayments to producers, leaving the Government's North Sea accounts £39million in the red between April and September of 2015, according to HMRC figures, which is thought to be the first time the UK has recorded a loss over a six month period since the North Sea oil industry became established 40 years ago.
Qn for the pilots - with NHV/ Inaer et al now offering salaries at 5500 EUR a month for month on work only, have we entered an era where the former CHC/ BRS people making 10000 EUR a month ish are over? What implications for their pilot unions when collective bargaining is one of the drivers for them being expensive on cost?
Do we think the race to the bottom on pilot salaries (and AMEs too of course) is now on? Someone wafted an offshore pilot job paying 6-8000 EUR a month past me recently and I can't help but feel that's a lot less than 12 months ago. Is realism creeping in? I think in the current market people would rather be making 5k Euros a month in take home than unemployed. Is that true or is it just me?
Do we think the race to the bottom on pilot salaries (and AMEs too of course) is now on? Someone wafted an offshore pilot job paying 6-8000 EUR a month past me recently and I can't help but feel that's a lot less than 12 months ago. Is realism creeping in? I think in the current market people would rather be making 5k Euros a month in take home than unemployed. Is that true or is it just me?
I think in the current market people would rather be making 5k Euros a month in take home than unemployed. Is that true or is it just me?
GHC as in Qatar
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I think it may be marginally better than that. I heard this morning that GHC will/may migrate their touring staff to 6 & ^ so as to retain staff wherever possible - VFR
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To survive the oil slump:
Find alternatieve Business
http://www.az.nl/nieuws/az-supporter...nstip/1?catid=
Although not completely new as CHC has done this also for Feyenoord in Rotterdam some years ago. But already lost that contract to HeliHolland and later HeliJet Charter DE.
SLB
Find alternatieve Business
http://www.az.nl/nieuws/az-supporter...nstip/1?catid=
Although not completely new as CHC has done this also for Feyenoord in Rotterdam some years ago. But already lost that contract to HeliHolland and later HeliJet Charter DE.
SLB
Last edited by Self loading bear; 3rd Apr 2016 at 14:27. Reason: Link
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Huge difference between 24$ in UK per barrel, and only 7$ in Norway:
Grafen som viser hvor billig norsk oljeproduksjon er ?
Grafen som viser hvor billig norsk oljeproduksjon er ?
The way forward for Bristow is to "rearrange" the senior management team.
From Jonathan Bailiff:-
I'm sure Mike Imlach won't be missed by most.
From Jonathan Bailiff:-
As we embark on these changes today, I am announcing the following changes to senior management, effective immediately:
· Chet Akiri has been named Acting Senior Vice President of Operations and Chief Commercial Officer, and will oversee operations while a search is underway for a new Senior Vice President of Global Operations.
· Jeremy Akel, Senior Vice President and Chief Operating Officer (COO) has left the company and we have eliminated the COO position.
· Vice President of Global Operations Mike Imlach and Vice President of Business Development Mike Sim have also departed the organization.
· Chet Akiri has been named Acting Senior Vice President of Operations and Chief Commercial Officer, and will oversee operations while a search is underway for a new Senior Vice President of Global Operations.
· Jeremy Akel, Senior Vice President and Chief Operating Officer (COO) has left the company and we have eliminated the COO position.
· Vice President of Global Operations Mike Imlach and Vice President of Business Development Mike Sim have also departed the organization.