Well yes but any major is going to have a long term business plan not just looking 6 months ahead i do realise that.You forget the real reason we are on this board is 100% about xel and when this will move mate? I realise what the North Sea is about and the concerns of the whole industry but that will not change the price here or anything else.I am sure that nothing will happen here till at least September.Who would be in a rush to for a farm out or to buy xel when they can play this? The oil business or oil majors are not known for charity they are always looking for weaknesses and that is uncertainty right now on the politics and they WILL know fine well about the loan XEL have at the moment and when it has to be paid back. Am i wrong to not ignore these things or should i stick my fingers in my ears, keep my eyes shut and just keep the faith that everything will be fine in a few weeks?
It was the chancellors taxes 3 yrs back that raped this and other ukcs e&p companies, companies can find potentially bigger finds overseas with stable politics and cheaper manpower/ operating costs... Much work to be done to build up investing confidence of both ii/pi/companies...
Key facts Economics •Capital investment of £11.4 billion in the UK's oil and gas reserves in 2012 was the highest for 30 years; in 2013 investment will reach a record £13.5 billion. •In 2012/13, the industry paid £6.5 billion in tax on production. The wider supply chain is estimated to have contributed another £5 billion in corporate and payroll taxes. •In 2012, UK oil and gas production saved the UK importing energy worth £32 billion and the balance of trade in goods and services was further boosted by the export of oilfield goods and services to the tune of £7 billion. •The industry supported some 450,000 jobs across the UK. Energy Policy •Around 70 per cent of the UK’s current primary energy demand is met by oil and gas. •Oil and gas production from the UK sector of the North Sea peaked in 1999, but the UK remains a substantial producer today. •In 2012, the UK remained in the top 25 oil and gas producers in Europe, the UK is 3rd largest for gas and 2nd for oil. •Over the last four decades, 42 billion barrels of oil equivalent (boe) have been extracted on the UKCS. In 2012, the combined production of oil and gas was 1.55 million boe per day. •In 2020, it is estimated that 70 per cent of primary energy consumed in the UK will still come from oil and gas. •Id the current rate of investment is sustained, the UKCS has the potential to satisfy around 50% of the UK’s oil and gas demand in 2020.
a light read - skip to the conclusion http://www.oilandgasuk.co.uk/cmsfiles/modules/publications/pdfs/EC033.pdf
You would think that with all the Russian/Syrian/Iraq shenanigans going on that reinvestment in your own reasonable oil and gas supplies on your own doorstep netting you both taxes and national energy security would be top priority, but then whenever did middle/top management/politicians in this country excel at sorting these problems out before they become out of hand. Would love to see xel come good, but not holding my breath
Reliant on the North Sea oil and gas industry and billions in tax - they have to get it right.
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