200 billion pounds returns from repair industry
Britain's Oil and gas sector in front of the toughest challenge in 50 years
The British oil and gas industry facing a very difficult situation, it now stands in front of the biggest challenge over the past 50 years. The challenge is to lower the levels of new discoveries of oil or gas wells, at a time when British investment in this area at unprecedented levels. During the past year, the total value of investment in the sector of 14.4 billion pounds, despite a slight decline expected this year to £ 13 billion, focused investments in four major fields, the oil and gas industry in Britain has not succeeded in drilling 15 wells only in 2013, compared to 44 wells six years ago. Accompanied by the decline in the number of wells that are drilled with a rapid increase in production costs which increased last year by about 15 percent. The high cost of extracting the oil barrel 27 percent per year, for up to £ 17 per barrel.
During the past 12 months the number of oil wells that exceed the cost of producing a barrel of £ 30, and of course the high cost reflected the position of the companies of oil and gas exploration in the United Kingdom, the British company Centrica decided to focus future investments in Norway and North America rather than the United Kingdom. London fears of negative repercussions on the State Treasury as a result of this increase in cost, is expected to back off tax payments for the production of 6.5 billion pounds for the year 2012-2013 five billion pounds in the current financial year. Despite these challenges, many workers in the industry are still at the conviction that the British oil and gas industry can achieve excellent results if restructured. And for the ' economic ' Dr. Oliver Byrne oil expert and member of the Board of the oil and gas industry, commented saying: ' the enormity of the challenges we face are commensurate with the size of the gains and profits that can happen from this industry, The report by Sir Ian wood at the request of the British Government on the prospects for the oil and gas industry, the scientifically possible to add £ 200 billion to the national economy during the next 20 years, and that Britain is between three to four billion barrels during that period, provided that the reorganization of the industry ' he adds: 'the British Government is committed to support it currently employs 450 000 people, to improve performance and increase the efficiency of the workers could increase our oil and gas equivalent One third of the current production ', says: ' the UK is working in this direction, increasing domestic production of oil and gas issue related to the national security of Britain '. The optimistic view that collides with other think that the future holds is bad news for the oil industry. Previous oil expert in shell Monica Cadet believes that there are doubts about the ability of the oil and gas industry in Britain to stay.
For the ' economic ' comments saying: ' most of the British oil and gas currently comes from the North Sea and, if separated from Scotland it would be hard to say that the British oil industry, London aware, if London is relying on oil and gas the Rocky this controversial and many uncertainties surrounded its ability to meet the needs of British energy ' and add: ' conflict between Scotland and the British Government over the future of the NOC is straightforward. Prime Minister of Scotland Alex Salmond promotes Norwegian model for dealing with oil in the North Sea, while rejecting British Prime Minister David Cameron, seeks to save £ 1 billion a year from oil revenue in a Fund for future sovereign, like Norway, which will enable it to provide $ 30 billion to the future, whether or not Scotland independent estimates indicate that oil in the North Sea will remain for approximately 30-40 years, and the Scottish Government expects to be approximately £ 57 billion in the form of Tax revenues by 2018 '
The conflict over oil and gas in the North Sea between Cameron and Wesalmond had paid the first cabinet meeting on the Scottish lands for the first time since the 1920's to send a message to the rival Scottish that London would not give up its North Sea oil fields. A number of studies on the oil and gas industry in Britain indicate that investments may fall by nearly half over the next three years, and there is a quick dip for oil and gas produced from British waters in recent years, although this decline eased last year declined slightly, with 8 per cent of the total oil produced approximately 1.43 million barrels a day but the overall trend is declining.
In this picture the future wears a lot of melancholy; the British Government asked Sir Ian wood is a prominent businessman in the oil report describes the strategy to be followed to save the vital industry. About 70 per cent of Britain's energy needs would be met from the oil and gas sectors until at least 2040, when Britain adopted the alternative energy sources. The largest industry in the area of investment in the United Kingdom, and so far about half of Britain's energy needs, and to inject £ 50 billion in balance of payments annually, and through a series of suppliers includes 1100 Analyst Company, financial returns £ 27 billion in 2011.
Edward Baker Professor of petroleum economics at the London School of Economics said: ' current and future importance of oil and gas in the British economy and the challenges facing this sector pushed London to form the Board of the oil and gas industry to coordinate between government policies and the capacity of the oil and gas industry, but this step is not enough, the rise of the oil industry requires specific actions to encourage domestic and international investments, and if possible conflict between London seminars on North Sea oil and gas could hamper investment and expansion In the London production to expand oil and gas shale, this opens a window of hope if lost London influence on North Sea oil.