FreeTrader Posted October 27, 2011 Share Posted October 27, 2011 The Department of Energy and Climate Change released energy production statistics for August 2011 today and here's the DECC's summary from the total energy table: "Total production of indigenous primary fuels in the three months to August 2011 stood at 30.3 million tonnes of oil equivalent, 14.7 per cent lower than the corresponding period a year ago, with production in August at the lowest monthly level for over 30 years. This decline in output is due to a significant fall in petroleum and gas production as a result of maintenance work and slowdowns on a number of fields." Tables: http://www.decc.gov.uk/en/content/cms/statistics/energy_stats/source/total/total.aspx This isn't a one month blip, and to give some perspective on this decline I've summarised the Jan-Aug period for the past four years in the table below: George's tax grab isn't working out as expected. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted October 27, 2011 Share Posted October 27, 2011 In times of economic hardship doesn't production always fall because there is less demand? Maybe the bigger recent fall is because the price of oil has dropped since April so they were waiting prices to rise. Since QE it's back up into the 90s. Quote Link to comment Share on other sites More sharing options...
swissy_fit Posted October 27, 2011 Share Posted October 27, 2011 The Department of Energy and Climate Change released energy production statistics for August 2011 today and here's the DECC's summary from the total energy table: "Total production of indigenous primary fuels in the three months to August 2011 stood at 30.3 million tonnes of oil equivalent, 14.7 per cent lower than the corresponding period a year ago, with production in August at the lowest monthly level for over 30 years. This decline in output is due to a significant fall in petroleum and gas production as a result of maintenance work and slowdowns on a number of fields." Tables: http://www.decc.gov.uk/en/content/cms/statistics/energy_stats/source/total/total.aspx This isn't a one month blip, and to give some perspective on this decline I've summarised the Jan-Aug period for the past four years in the table below: George's tax grab isn't working out as expected. Looks to me like they pump more in the winter when the demand and price is higher, so it makes sense to do maintenance in August. Still, with a rate of decline like that, it's going to get pricey soon, imagine the balance of payments in a few years... Maybe the Yanks will sell us shale gas if we lick their b*tts.... Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted October 27, 2011 Share Posted October 27, 2011 George's tax grab isn't working out as expected. Nothing to do with the tax really - that wouldn't really show up for a while yet. The problem is basically that we discovered a set of big fields in the 1970s, all of which are now in the tail end stages of production. Later on, through the 1980s and 1990s, better E&P meant that we were able to put on lots more, but much smaller fields, leading to an overall production peak in 1999 for oil. The late discovery of and production from Buzzard slowed the decline for a while, but that is now maxed out, I believe, and there is little left in the pipleine (sic). So we see normal production declines. I doubt that dropping taxes to zero would do anything to reverse that now. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted October 27, 2011 Share Posted October 27, 2011 Looks to me like they pump more in the winter when the demand and price is higher, so it makes sense to do maintenance in August. Still, with a rate of decline like that, it's going to get pricey soon, imagine the balance of payments in a few years... Maybe the Yanks will sell us shale gas if we lick their b*tts.... It's a bit like Russian oil output - output drops in the summer because you'd be mad to try maintenance and work-overs in the winter.. Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted October 27, 2011 Share Posted October 27, 2011 Couldn't be um, related to this could it? http://www.bbc.co.uk/news/business-12905225 Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted October 27, 2011 Author Share Posted October 27, 2011 Nothing to do with the tax really - that wouldn't really show up for a while yet. The problem is basically that we discovered a set of big fields in the 1970s, all of which are now in the tail end stages of production. Later on, through the 1980s and 1990s, better E&P meant that we were able to put on lots more, but much smaller fields, leading to an overall production peak in 1999 for oil. The late discovery of and production from Buzzard slowed the decline for a while, but that is now maxed out, I believe, and there is little left in the pipleine (sic). So we see normal production declines. I doubt that dropping taxes to zero would do anything to reverse that now. No argument from me on the underlying reasons for the decline in North Sea output, but I think the magnitude of this year's drop has been a surprise. The Office for Budget Responsibility said just a few days ago that corporation tax payments have seen unexpected weakness due to poor bank results and lower than expected offshore oil production. Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted October 27, 2011 Share Posted October 27, 2011 No argument from me on the underlying reasons for the decline in North Sea output, but I think the magnitude of this year's drop has been a surprise. See post #6 Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted October 27, 2011 Author Share Posted October 27, 2011 See post #6 Hence my comment in the OP: "George's tax grab isn't working out as expected." Quote Link to comment Share on other sites More sharing options...
SarahBell Posted October 27, 2011 Share Posted October 27, 2011 How many oil workers use their wages to buy renewables for their own homes? Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted October 27, 2011 Share Posted October 27, 2011 How many oil workers use their wages to buy renewables for their own homes? One of the Oil drum jokes is that every petroleum geologist in the Western World owns a house with solar water heating and a wood burning stove Quote Link to comment Share on other sites More sharing options...
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