UK continually screws us over - why has oil crashed but out forecourt prices have not

[coullstar 0]

They are stock piling, in super tankers offshore!!! You cant really just shut in a well/platform, its it is designed to be continuously running so sometimes its better in long run to keep producing.

Crude affects petrol prices but doesn't wholly dictate it. Gas is the next power generation fuel to meet CO2 targets and a lot of the new big projects are focusing on this i.e. Australia, Prelude.

 

Price of oil affects many things, we notice it most on petrol as its something we use a lot of. I must reiterate I agree that nobody in this industry is special and deserves special treatment. All I ask is people don't think its a simple equation of oil producers opening or closing the taps as they see fit. Theres a lot more to it than that so don't all tar us with the same brush (theres a pun in there somewhere!).

 

I cant see it recovering quickly anytime soon but it will get back up to near $100 again. Hell the best any of my cars does is 25mpg so Im a little bit happy about this.

[mic_VR 3]

All I ask is people don't think its a simple equation of oil producers opening or closing the taps as they see fit.

 

Can they not just stick something in the hole to stop it and come back to it later? http://news.bbc.co.uk/1/hi/world/americas/8672181.stm

[coullstar 0]

It's more to do with the production facilities on the rigs that need constant use. We sell the so call plug that you mention for the individual wells but there only used during topside work over or for safety requirements.

[Shep___ 10]

Has anyone noticed if / how its affecting LPG prices? I always forget to look when I fill up.

[Bullfinch 0]

The new factor this time around is US shale oil and gas. BP are predicting $50 Brent for the next 3 years. Not many North Sea fields are profitable at that price.

[Diesel2000 10]

In 2000 the price of oil was about $30bbl and the forecourt prices were approaching the £1 per litre mark which prompted the blockades at the refineries.

 

The price at the minute is about $47bbl and the forecourt price at Asda tonight was £1.03 (approximately). That seems about right to me, also bear in mind that inflation, running costs and basic wage increases means that even if the oil price returned to $30bbl the price per litre is unlikely to return to the same as it was in 2000.

[jamiehamy 0]

Asda Linwood was 55.7p last time i looked - same price as when I converted years ago. I've got an injector issue at the moment, but high on the list when the weather sorts itelf out...along with sill, brake pipes, handbrake mounting, locking, exhaust mount, tyres...sigh!

Has anyone noticed if / how its affecting LPG prices? I always forget to look when I fill up.

[coullstar 0]

In 2000 the price of oil was about $30bbl and the forecourt prices were approaching the £1 per litre mark which prompted the blockades at the refineries.

 

The price at the minute is about $47bbl and the forecourt price at Asda tonight was £1.03 (approximately). That seems about right to me, also bear in mind that inflation, running costs and basic wage increases means that even if the oil price returned to $30bbl the price per litre is unlikely to return to the same as it was in 2000.

 

The issue is the cost to producers to get the oil out the ground has risen massively over the last 10 years especially in the North Sea. As you can imagine all the easy oil has been recovered and the oil that is left is in hard to recover ie more expensive. That and the use of contract staff on silly wages hasn't helped and in my opinion has created this bubble within oil and Gas workers. Costs have risen exponentionally rather than in line with inflation etc. It was not sustainable but the industry as a whole just get going along, it will recover but it's needs to adapt to be more reactive to things like this.

Oil field service company Sclumberger axed 9000 jobs yesterday. There will be more to come for sure in the short term.