Aberdeen, Aspc Stats

[mechos]

- So the HMcT message is that leveraging up on housing debt is a rite of passage - an acceptable "life choice".

The eye-watering mortgage interest payments are worth every penny - they are not merely rent you pay the bank, they are the subscription fees for joining the club! If you're not a paid up member then you can be deemed to have made 'poor life choices' and may be branded as irresponsible.

In HMcT's club rules, those who followed their calling and have become the biggest mortgage slaves are lauded as the most upstanding, most selfless and most responsible of members.

Biggest Saps is the reality.

..."may now have the opportunity to catch up"...

Catch up? Eh, No!

Non property owners have the wealth they believe they have, and it increases only as they work and save.

If there is any perceived relative catching up then it's only because property owner's delusional dreams of (unearned) enrichment are being torn down. The biggest saps are the first to feel the pain - which is only good and correct.

Smart money will have STR'd before now - a 'poor life choice' at this time would be to own excess houses.

[HAMISH_MCTAVISH]

McGlashan, now you're moving on to selective quoting out of context?????

Oh my, now you're really getting desperate.

The selected text, within the context of the post and thread.....

Absolute Zero---So what you're saying is the fact that your property(ies) are now worth less than they were a year ago doesn't bother you in the least?

HAMISH_MCTAVISH--No more than it bothers me if the pound is weak or strong today versus the dollar. I don't need to exchange pounds today for $1.60, I didn't need to exchange pounds months ago for $1.40, I won't need to exchange pounds later this year for $1.70. At some point I may decide I want to go on holiday or buy something in dollars. However I am quite happy to wait until the pound is relatively strong before doing so.

I don't need to sell my properties for 15-20 years. All I am betting on is that there will be another economic cycle, another house price cycle, and at some point towards the top of it, probably a few years before to be safe, I will sell my properties and downsize as I approach retirement.

The price of the house today is irrelevant. Today is not when I need to trade it for cash. Thats decades away.

So to answer your question, does it bother me? No. It would be more accurate to say that it annoys me. It annoys me that the feckless may now be able to buy a house, when they don't really deserve it. It annoys me that people who made poor choices in life, may now have the opportunity to catch up with those who were responsible. It annoys me that so many people who are clearly unemployed, underemployed or benefits scroungers, have a forum to pat themselves on the back and congratulate each other on their poor life choices.

[HAMISH_MCTAVISH]

- So the HMcT message is that leveraging up on housing debt is a rite of passage - an acceptable "life choice".

The eye-watering mortgage interest payments are worth every penny - they are not merely rent you pay the bank, they are the subscription fees for joining the club! If you're not a paid up member then you can be deemed to have made 'poor life choices' and may be branded as irresponsible.

In HMcT's club rules, those who followed their calling and have become the biggest mortgage slaves are lauded as the most upstanding, most selfless and most responsible of members.

Biggest Saps is the reality.

Catch up? Eh, No!

Non property owners have the wealth they believe they have, and it increases only as they work and save.

If there is any perceived relative catching up then it's only because property owner's delusional dreams of (unearned) enrichment are being torn down. The biggest saps are the first to feel the pain - which is only good and correct.

Smart money will have STR'd before now - a 'poor life choice' at this time would be to own excess houses.

Mmmmmm, lots of tin-foil-hat mentalism in that one....

Where to begin.

Given that property crashes come along every 12 to 20 years or so, and are unpredictable as to timing and duration, and given the eye-watering amounts of money people would likely waste in rent if they got it wrong by a few years......

It is clear that the only guaranteed way to financial security is to buy as much as you can, as young as possible, and try to pay it off as early as you can afford to.

Obviously, if you come of age to buy in the middle of a crash, it can make sense to wait a few years. But for most people, its really just as simple as buying young, even if they end up buying shortly before a crash.

Prices in Aberdeen are not yet even back to Jan 07 levels, and are currently rising. Rent in Aberdeen is generally comparable to the costs of a full repayment mortgage, and has been as long as I remember. As of today, anyone that has delayed purchase from early 2007 or before has lost a considerable sum of money that has been added to lifetime housing expense through renting in the meantime.

Someone that delayed from 2005 til today, has added 4 years of rent to their lifetime housing cost. That 4 years of rent could have been paying their mortgage instead of someone elses. They could be 4 years closer to being mortgage free.... Instead, their landlord is....

For the crash to work out for them, they need to see houses drop back to 2005 levels, AND then still drop by several years worth of rent on top of that. Tens of thousands of pounds, anyway. (yes there is some adjusting for interest, but its still a substantial further drop required)

Chances of that happening for quality properties in Aberdeen are precisely Zero.

[The McGlashan]

McGlashan, now you're moving on to selective quoting out of context?????

Oh my, now you're really getting desperate.

The selected text, within the context of the post and thread.....

The context within which I quoted you was context of offering cashinmattress another of your egregious pronouncements for his sig. I did you the favour of offering a quoted standpoint of yours which only shows you to be consumed with pride, envy and wrath.

I am not a religious man, but I believe that the full quotation of the exchange which you provided demonstrates just about the full range of the seven deadly sins.

It is clear that the only guaranteed way to financial security is to buy as much as you can, as young as possible, and try to pay it off as early as you can afford to.

There are but few ways to financial independence. A pay packet combined with debt is most certainly not one of them.

Edited June 18, 2009 by The McGlashan

[mechos]

Chances of that happening for quality properties in Aberdeen are precisely Zero.

"... precisely zero."

and yet...

It annoys me that people who made poor choices in life, may now have the opportunity to catch up

Play down the probability of there being a significant correction - But, just in case, play up the unworthiness of those who would benefit.

Look. It's a market. Explain to me how worthiness enters into it.

Wealth held in property is capital. Wealth held in cash is capital.

You have irreversibly identified yourself with the the former in-group : you place the latter beneath contempt.

Those here in the latter group have no such prejudice. We have an interest in buying property.

Your irreversible position means all your comment is moot, and laced with bias.

[euan2020]

another 3 folk given there notice at my work this week

well the ones i am aware of

thats thing - you dont even hear about people going unless you work closely with them - heard about a few who I didnt even know had gone

[cashinmattress]

Geolink are paying off a bunch.

[m4rk]

well thats my place all done and dusted. everything finalised move in in august. im sure il still kick about this site its taught me alot. bought with a good chunk off 2007 prices and it had extentions to the garden to the value of 10-15k so happy enough. 25 year mortgage but il have it paid off in 10 years i recon. 35 and mortgage free and probably thinking about a family or whatnot will do me just fine. now i can start thinking about cars and maybe my first holiday in 6 years!!

[HAMISH_MCTAVISH]

25 year mortgage but il have it paid off in 10 years i recon. 35 and mortgage free and probably thinking about a family or whatnot will do me just fine. now i can start thinking about cars and maybe my first holiday in 6 years!!

Spot on. Well done.

Thats exactly the right thing to do. You're setting yourself up well for the future, and your choices are a lot smarter than most people at that age these days. (not to mention many on here a lot older!!! )

Enjoy the house.

[ccc]

Spot on. Well done.

Thats exactly the right thing to do. You're setting yourself up well for the future, and your choices are a lot smarter than most people at that age these days. (not to mention many on here a lot older!!! )

Enjoy the house.

Hamish - I have repeatedly said that one plan I may choose to follow is to buy in cash aged 35.

I will be in exactly the same situation as M4rk. Except I won't have paid any interest and I won't have got into debt.

Why is what he is doing - "Well done" and my potential plan is not ?

Thanks.

[HAMISH_MCTAVISH]

Hamish - I have repeatedly said that one plan I may choose to follow is to buy in cash aged 35.

I will be in exactly the same situation as M4rk. Except I won't have paid any interest and I won't have got into debt.

Why is what he is doing - "Well done" and my potential plan is not ?

Thanks.

Because your "plan" relies on a highly improbable, in fact almost impossible, 50% drop in house prices for you to achieve purchase of a wee flat by 35. In the meantime, you are a 30-something Kipper, living at home with the parents. Not so much a plan at all really, so much as a remarkable lack of planning.

His plan involved being responsible while he was young, buying a proper house worth far more, with a bit of land and garages, paying it off by 35, and already having the enjoyment of it for ten years by that point.

I am not surprised you fail to see the difference, but almost everyone else can see it clearly.

[The McGlashan]

His plan involved being responsible while he was young, buying a proper house worth far more, with a bit of land and garages, paying it off by 35, and already having the enjoyment of it for ten years by that point.

I am not surprised you fail to see the difference, but almost everyone else can see it clearly.

The difference is clear. What I'm about to type is a matter of opinion, and it's probably where we differ the most, Hamish.

Being responsible is not something I associate with being young. I'm sure we all expect to live longer lives than our grandparents' generation, so there's plenty time in life to settle down - but you're only young once. Being young is most certainly not for working every hour god sends to service debt; being young is all about goofing about, being irresponsible, experimenting with all sorts of things, trying stuff on, and changing your mind a lot - this is the post-modern age - it's all up for grabs! Not to try is not to know. If you can't do it when you're young, when can you do it? Above all, being young is for sha99ing. I hardly ever slept in my own bed during my 20's. Woo hoo! Rock-and-roll! Etc, etc. How can you know where your talent really lies if you're chained to a desk 50 hours a week?

Having the 'enjoyment' of living in a mortgaged house for ten years pales to insignificance compared to the enjoyment of slacking off and tasting all flavours.

Edited June 19, 2009 by The McGlashan

[savetheclaypigeon]

Because your "plan" relies on a highly improbable, in fact almost impossible, 50% drop in house prices for you to achieve purchase of a wee flat by 35. In the meantime, you are a 30-something Kipper, living at home with the parents. Not so much a plan at all really, so much as a remarkable lack of planning.

His plan involved being responsible while he was young, buying a proper house worth far more, with a bit of land and garages, paying it off by 35, and already having the enjoyment of it for ten years by that point.

This is a strange post from you Hamish. Normally you are at least on nodding terms with reason. But this is far too emotive. Why is a City Centre flat not a proper house? Surely it's just a different type of house, one that holds it's value owing to a different set of criteria.

You say the house has a bit of land. Slow down "Good Life"! We're talking decking and a water feature here, not self sufficiency.

A 30 year old living with his parents. What's wrong with that? It could be perfectly amicable, even mutually beneficial, arrangement for both parties. Some would view 10 years of such a situation preferable to 10 years of debt. Maybe you are like me, and you were "Rhona Cameron'ed" out the front door at a young age. Others are more fortunate. Why not take advantage?

Finally, it's words like "impossible" that scare me as an investor. It's "impossible" to lose money with bricks and mortar. Sound familiar?

If you think that a 50% fall in the average house price is "impossible" from the position we are in now, then good luck to you. The perma bull/bear attitude never ceases to amaze and, my God, do I love it. You are the people I make money from.

But most importantly, all the best in your new place m4rk...

[fflump]

The difference is clear. What I'm about to type is a matter of opinion, and it's probably where we differ the most, Hamish.

Being responsible is not something I associate with being young. I'm sure we all expect to live longer lives than our grandparents' generation, so there's plenty time in life to settle down - but you're only young once. Being young is most certainly not for working every hour god sends to service debt; being young is all about goofing about, being irresponsible, experimenting with all sorts of things, trying stuff on, and changing your mind a lot - this is the post-modern age - it's all up for grabs! Not to try is not to know. If you can't do it when you're young, when can you do it? Above all, being young is for sha99ing. I hardly ever slept in my own bed during my 20's. Woo hoo! Rock-and-roll! Etc, etc. How can you know where your talent really lies if you're chained to a desk 50 hours a week?

Having the 'enjoyment' of living in a mortgaged house for ten years pales to insignificance compared to the enjoyment of slacking off and tasting all flavours.

Each to his own of course, but if you are 20 today and come 2019 you hit 30 with no tangible assets and haven't started a pension then you are in serious trouble IMO. Living longer means you have to start earlier to sufficiently fund increased retirement and healthcare costs. Demographic shift means the state will not be able to support you in your old age-its down to you. All boring stuff, but I managed to shag my way through my 20s and travel while having a career

[ccc]

Some interesting comments. Everyone is different. Some want to settle down young and be sensible. Some do not. That is all good in my book. If someone wants to get a place at a young age good luck to them. Personally I agree with McGlashan that your 20's are the time to be having no responsibility - if you can manage it !!

However if others feel differently - fair dos. I suppose there is the posibilty of combing the two. However no matter what anyone tells me you simply cannot be as fancy free if you have a large debt. Renting out or whatever. It will still be there. If you are happy with that at a young age ? No harm.

As for Hamish - I have no idea where he gets this idea that I am planning to buying a city centre(ish) a flat. I keep an eye on an area like this the simple fact that it shows FTB sentiment and prices. These will drive the rest fo the market. So what happens in Gorgie - will trickle through everywhere else. No doubt Torry is the Aberdeen equivalent.

Anyway as others have said - what is wrong with living in a City Centre flat ? Many very wealthy people do just this. Yes they may be living in 'executive apartments' rather than a tenement - however there is a not a great difference.

I have come to the conclusion that Hamish has a simple logic. Anyone who does not do exactly the same as he did/does = idiots.

Strange view on life IMO.

PS - Good luck with your new hoose M4rk.

[savetheclaypigeon]

Each to his own of course, but if you are 20 today and come 2019 you hit 30 with no tangible assets and haven't started a pension then you are in serious trouble IMO.

fflump is spot on!

I don't think you can afford to have 10 years of expensive booze and cheap women these days. You have to plan for the future as well. I'm three quarters of the way through my "ker-razy" twenties and I do regret not getting serious about my finances sooner. The first five years were blinding though to be fair!

The bugger of it is that putting in the "hard yards" when you're young (getting in good habits, compound interest, no dependents etc) is when you get the most benefit. Shame this co-incides with the exact same time that you want to indulge in some hardcore silliness.

It would be interesting to know the financial state of the average British 30 year old with regards assets, home -ownership, pensions, debt etc. Anyone seen any stats in this regard?

[The McGlashan]

fflump is spot on!

I don't think you can afford to have 10 years of expensive booze and cheap women these days. You have to plan for the future as well. I'm three quarters of the way through my "ker-razy" twenties and I do regret not getting serious about my finances sooner. The first five years were blinding though to be fair!

The bugger of it is that putting in the "hard yards" when you're young (getting in good habits, compound interest, no dependents etc) is when you get the most benefit. Shame this co-incides with the exact same time that you want to indulge in some hardcore silliness.

It would be interesting to know the financial state of the average British 30 year old with regards assets, home -ownership, pensions, debt etc. Anyone seen any stats in this regard?

Just my personal experience and opinion, again, but if you can find a way to make the hardcore silliness pay...

There are very few ways to financial independence; a salary is not one of them. During your 20's you are the most social animal you will be in your life. During this time you can build up 'intangible assets' every bit as important (if not more so IMHO) as 'tangible' ones. Over time, if cultivated carefully, these intangibles will net you the opportunity to step off the hamster wheel and control your own destiny with complete independence, without fear of market fluctuations or the whims of employers.

Edited June 19, 2009 by The McGlashan

[HAMISH_MCTAVISH]

if you are 20 today and come 2019 you hit 30 with no tangible assets and haven't started a pension then you are in serious trouble IMO.

Absolutely. Those that don't invest in assets young are going to be screwed. Given that rent in Aberdeen is similar to, or more than, rent..... Buying a house is the easiest way to do so and still have enough cash left over to enjoy your youth.

Living longer means you have to start earlier to sufficiently fund increased retirement and healthcare costs. Demographic shift means the state will not be able to support you in your old age-its down to you.

I've said repeatedly that it is highly inadvisable to p1ss away your 20's..... It is beyond me how so many people on a site supposedly for financial prudence can disagree. Cognitive dissonance at it's finest.

All boring stuff, but I managed to shag my way through my 20s and travel while having a career

So true. You can travel the world, shag to your hearts content, AND be financially responsible.

[popeye1]

So true. You can travel the world, shag to your hearts content, AND be financially responsible.

Wise words.....although it is harder now than it was in the past. Nowadays jobs that previously required O Grades/Highers now need a degree(which has to be paid for) . There are a lot more grads coming out with huge debts to do non-grad jobs and having to pay huge house prices etc.

Couple this with the demise of final salary pensions etc and it is harder. It is probably better for you to be boring and sensible. Students for example are not like the previous generation.

Education is now seen not as a tool for personal development but for financial gain.

[ccc]

Absolutely. Those that don't invest in assets young are going to be screwed. Given that rent in Aberdeen is similar to, or more than, rent..... Buying a house is the easiest way to do so and still have enough cash left over to enjoy your youth.

I've said repeatedly that it is highly inadvisable to p1ss away your 20's..... It is beyond me how so many people on a site supposedly for financial prudence can disagree. Cognitive dissonance at it's finest.

So true. You can travel the world, shag to your hearts content, AND be financially responsible.

Wrong IMO.

Debt is always there. It is always with you wherever you go. Travelling with debt attached is never going to be the same as heading off without a care in the World.

Trust me - I know.

As I have said each to their own. If others want to be sensible in their 20's then that is up to them. Good luck.

However this theory that you can be sensible/financially responsible and travel without any worries in the World is 100% ********.

You would have had to experience both these situations to know this. I have. You have not.

Consider this today's lesson in life Hamish.

As for buying assets when you are young ? Maybe that is good advice for certain individuals.

However I did not follow this plan, yet I am in a rather good financial situation today.

Go figure eh...

[cashinmattress]

Investors shun North Sea despite rebounding oil prices

Despite a recent spike in oil prices, energy industry chiefs warn that infrastructure investment in the North Sea will not jump in tandem as market volatility is scaring away investors. Skip related content

Related photos / videos

Oil prices, despite a recent rally, languish more than 50 percent beneath record highs a …More Enlarge photo

Bosses from the oil and gas sector gathered last week in the Scottish coastal city of Aberdeen for an industry conference that delivered little optimism regarding the outlook for North Sea development.

Oil & Gas UK, an organisation representing Britain's offshore energy industry, hosted the Aberdeen gathering amid a sharp domestic downturn that has curbed business investment across the country.

"Businesses have already found 2009 a turbulent, tough year and the UK offshore oil and gas industry is no more immune to these pressures than the rest of the economy," Oil & Gas UK said in a statement.

"There is growing concern that the rapid fall in oil prices and the freezing of capital markets will impair investment and suppress production in the North Sea, with wider implications for companies and employment across the supply chain."

Oil prices, despite a solid rally in recent months, languish more than 50 percent beneath record highs that were struck one year ago.

"Even the short term, recovery in oil prices of the last two or three months is way too early to positively impact people's decision (to invest) in the long term," Bob Keiller, chief executive of energy industry services provider PSN, told AFP on the sidelines of the conference.

"The volatility (of oil prices) has affected the confidence in investments," added Keiller.

Widely-traded Brent North Sea crude oil currently stands at about 70 dollars a barrel, more than double its level in December when the sharp global recession severely dented demand for energy.

Prices however remain more than half their level of July 2008 when fears about supply disruptions had sent them rocketing to record highs above 147 dollars.

According to Oil & Gas UK, expenditure on North Sea exploration was down 70 percent at the start of 2009 compared to a year earlier.

Investment which totalled five billion pounds (5.9 billion euros, 8.1 billion dollars) in 2008 could fall to 2.5 billion pounds this year, the industry body said.

Despite the recent rally in oil futures, the Organization of Petroleum Exporting Countries argues that the current prices is preventing investment in fresh exploration projects worldwide.

Malcolm Webb, president of Oil & Gas UK, noted that erosion in capital expenditure for North Sea exploration had begun in 2006, when oil prices were far below current levels.

In a sign of the bad times for the industry, the British government has postponed indefinitely the sale of North Sea exploration sites.

"Investing in the future is not easy in the current environment," said Bernard Looney, managing director of oil giant BP's North Sea business.

"Our statistical review shows that UK (oil) production has dropped 38 percent since 2000 to 2008. When I listen to people discuss what I call the seductive run up in oil price, I am worried that this is masking a much less talked about fact -- gas prices.

"They continue to fall. When you assume that 50 percent of North Sea production is gas, the average North Sea realisation today is still around 40 dollars per barrel of oil equivalent."

Already posted on main forum, but repeated here for those that want Aberdeen info only.

[HAMISH_MCTAVISH]

posted some more spam.....

That press release is so transparent, I'm surprised even you don't see through it.

How to get a government subsidy................

Step one. Fly new energy minister to Aberdeen, then fly via helicopter to play with real, working oil rig.

Step two. Watch new energy minister get as excited as a child playing with the worlds biggest mechano set. Arrange press interview for said minister to babble excitedly about how great new toy is, and praise his new friends for letting him play with it. Feed energy minister some chocolate and fizzy drinks, and watch him reach new levels of excitement, and pwomise faithfully not to let any of the big bad bullies break his new toys.

Step three. Have your trade body write a panic filled press release forecasting doom and gloom. Watch new energy minister squirm as he realises he promised, just a week ago, how great the future was for the North Sea.

Step four. Offer energy minister a way out, if only he can arrange a teeny weeny government subsidy, then all the nice friendly oil companies won't have to pack up their toys and go home after all.

Step five. Sit back and count your new found source of profits....

Step six. Wait 12 months for new energy minister to be appointed, repeat process.

Already ignored on main forum, but repeated here because I want more attention.

There you go, fixed that for you.

[The McGlashan]

Investors shun North Sea despite rebounding oil prices

Already posted on main forum, but repeated here for those that want Aberdeen info only.

Thanks for that, cash.

It's not a surprise that price volatility is making investors cautious. Who would risk capital in a market which saw such a spectacular boom and bust cycle in such a short period last year?

What is a surprise is that the recent run-up in the oil price has not been accompanied by a corresponding gas-price surge. The gas price tracked the oil price all the way up last year. Why not this time?

I know that a significant increase in LNG transportation capacity has come on stream in the last 12 months, turning the natural gas market into more of a global market rather than a network-based market. Can this alone account for the price stability? What other factors are in play?

Edited June 22, 2009 by The McGlashan

[The McGlashan]

ASPC For sale

Today (22 June 2009)

For sale : 1127

Added in last week : 71 (6%)

Added in last month : 306 (27%)

Over a month : 821 (73%)

compared to last month (25 May 2009)

For sale : 1202

Added in last week : 86 (7%)

Added in last month : 298 (25%)

Over a month : 904 (75%)

ASPC for lease

For lease today : 297

Added in last week : 38 (13%)

Added in last month : 129 (43%)

Over a month : 168 (57%)

compared to start of month

For lease: 281

Added in last week: 26 (9%)

Added in last month: 116 (41%)

Over a month: 165 (59%)

[cashinmattress]

Here's a lowdown of the happenings in the UKCS from a few weeks ago...

2009 a dreary drilling year so far

When compared with 2008, the pace of activity in the UKCS remains subdued, with only eight mobile rigs currently active on exploration and appraisal drilling – the same as last month – of which two are drilling sidetracks.

Thus far, five wells, broadly balanced between exploration and appraisal, have been started this year. In addition, 14 sidetracks were initiated, 11 being appraisal and one well re-entry.

Half the current activity is in the Central North Sea. On block 20/1, Nexen continues to keep two rigs active. Most recently, 20/1-10, an appraisal of the Golden Eagle offset discovery, Hobby South, spudded on May 19 using the rig, Transocean Prospect. This was the rig that previously drilled the Hobby discovery well, 20/1-8, and three appraisal sidetracks.

The GSF Arctic 4 abandoned Pink appraisal 20/1-9 after 30 days. It remains to be seen if a sidetrack is initiated.

Talisman continues with the 22/22a-7 exploration well on the Jurassic Shaw prospect with the Ocean Nomad. CNR’s Deep Banff appraisal was sidetracked on May 10 after 114 days.

GDF SUEZ’s well 22/24c-11 is targeting the HP/HT (high pressure/high temperature) Triassic Tesla prospect, and was started on April 30. Expectation is that this probe will be of long duration, with the Ensco 101 likely to be on location for more than 90 days.

Meanwhile, Total has suspended operations on the Kessog extended well test, but the Sedco 714 is expected to return following a workover on the Jura field.

In the Southern North Sea, the Noble Julie Robertson is the sole active rig and has been operating on Venture’s 49/4c-7Z appraisal of the Rotliegendes Kew discovery for more than 142 days. A pilot hole was drilled, then plugged back and sidetracked, to evaluate the northern part of the structure. Gas has been proven and the well is to be suspended as a potential future producer. The result has positive implications for the operator’s Carboniferous Wandsworth prospect, likely to see drilling in 2010.

No E&A activity is reported from the Northern North Sea.

West of Shetland, the drillship, Stena Carron, abandoned Chevron’s Rosebank North well 213/27-3Z after 27 days in sidetrack, the whole programme having lasted six months. It then mobilised to spud Hess’s Palaeocene Cambo appraisal, 204/10a-3, on May 20. Chevron, DONG and OMV are partners.

Chrysaor has returned to drill a further appraisal on Solan, with well 205/26a-8 commencing on May 17 with the Byford Dolphin.

In the East Irish Sea, the long-awaited multi-well programme for the EIS consortium commenced on May 1 with the Ensco 92. EOG’s 110/14b-7 was the first to be drilled, though being abandoned after just 15 days, may not have been successful.

The rig then moved 12 miles north-west to spud EOG’s second well, 110/12-6, on May 22. Over the next few months, the unit will drill wells for Challenger, Venture, BHP and Centrica/HRL.

Looking ahead, and despite a raft of recent acreage relinquishments on the UKCS, Hannon Westwood’s list of wells planned over the next three years remains steady at just below the 200 mark, with a quarter being new indications this year.

The pace with which the resource is drilled is likely to remain slow as operators with contracts continue to seek contract adjustments and sub-lets, while others will delay taking on additional rig commitments.

That said, at the time of writing, the oil price is $61, an increase of nearly 20% in the last month and 75% since the beginning of the year. This may yet translate to a sustained recovery and boost confidence – so watch this space.

It's an issue with the venture capital, diminishing returns, and the Iraqi market upening back up to Western business; plus the demand coming from China and the wain of western hedgemony.

China is also buying up assets, big time. For as long as the greenback remains the petro-dollar, you can bet that BRIC nations will be trading their treasuries for tangible assets, because they know what the future holds for America.

I put up a chart showing the jackups and drilling forecast a few months back, and it tailed off severly in the next two years.

Keep in mind that the whole services industry is under severe contraints.

Wood group already took a hit with Chavez's resource takeover, and you hear about somebody local being paid off or cut back. I've seen this first hand offshore as the managment are looking actively at saving money. Things are changing, but maybe for the better as efficiency is...umm...mediocre at the best of times. They (North Sea rigs) are antiques and things break down constantly.

Check out this from PSN: PSN reviewing workers’ contracts

ENERGY service firm PSN is reviewing terms and conditions for some of its offshore workers.

The Aberdeen firm revealed the move after a man claiming to be an employee told the Press and Journal he was one of about 40 PSN workers on Canadian Natural Resources’ North Sea Ninian field who had seen their pay cut by £5,650 a year.

A spokeswoman for PSN said: “We are consulting with our workforce and discussing any potential changes with our trade union partners.

“Whilst there is a suggestion that these changes are being made to reduce costs, we have demonstrated to our employees that the value of their overall package remains the same.â€

Earlier this year, it emerged that the engineering unit of another north-east energy service firm – Wood Group – was cutting contractors’ pay by an average of 10% as oil companies felt the impact of lower crude prices.

Not many have seen pay increases this year, and seeing the big engineering services cutting back gives a pretty good indication of what is happening, as most projects would have at least a 6-12 month lead time.

All that said, there is a defnite shortage of higly skilled people in the industry as a whole, and money will not entice most of them to come work in the North Sea or Aberdeen. The world is your oyster if you are keyed up. I say this because it is hard as hell to get motivated and qualified people. There are plenty of usless buggers though.