• This is a stand-to for an incoming competition, one of our most expensive yet.
    Later this week we're going to be offering the opportunity to Win £270 Rab Neutrino Pro military down jacket
    Visit the thread at that link above and Watch it to be notified as soon as the competition goes live

How big is the UK’s strategic Oil reserve?

#1
Just a question for anybody who knows and can tell me true

cheers

AJ
 
#6
Including what the Falkland Islands are sat on? No wonder we're ordering those aircraft carriers... :wink:
 
#7
Members of the International Energy Agency must have a strategic petroleum reserve equal to 90 days of oil imports for their country. Only net oil exporters were exempt from making such a reserve. United Kingdom was exempt but that has changed a while back and we are now a net importer of oil.

So the UK started to create a strategic reserve not that long ago despite EU Council Directive 68/414/EEC (dating from 1968) which stated all members must have a strategic petroleum reserve within the E.U. equal to at least 90 days average daily internal consumption.

So how big is it now ? Dunno, but given a skint and stupid Government I would suspect not big enough.
 
#8
Blogg said:
Members of the International Energy Agency must have a strategic petroleum reserve equal to 90 days of oil imports for their country. Only net oil exporters were exempt from making such a reserve. United Kingdom was exempt but that has changed a while back and we are now a net importer of oil.

So the UK started to create a strategic reserve not that long ago despite EU Council Directive 68/414/EEC (dating from 1968) which stated all members must have a strategic petroleum reserve within the E.U. equal to at least 90 days average daily internal consumption.

So how big is it now ? Dunno, but given a skint and stupid Government I would suspect not big enough.
Given the recent panic over a strike at whatever it's called, I'd guess "What reserve?" springs to mind......
 
#9
Oil in the ground isnt part of the strategic reserve, as it cannot be actively quantified. Offshore reserves within UK waters total about 3 billion barrels.

On the UK 'strategic reserve' is sufficient to cover 70 days of normal consumption, with no interruption to exports. This reserve is made of stocks held within refinery stores and pipelines.
In any situation that threatened fuel supplies, refinery capacity and oil supplies would be held within the UK.
There would have to be rationing, but it would be quite do-able.

Also ref net import/export of oil, thats a really cr@p way of looking at oil production. Saudi Arabia is the biggest nett exporter of oil in the world, and yet imports petrol and marine fuels....
 
#11
Somewhat off topic, but still about oil:

According to some oil industry boffin I heard rambling on R4 the worlds reserves of oil are on the increase. This is due mainly to technological breakthroughs that now mean that oil that wasnt worth extracting because it was too difficult and expensive to do is now do-able,
and at a good enough profit margin for the industry to make it worthwhile. He also suggested that the savings will be passed on to the customer at the pumps. (but the füukking gubment will probably snatch it back in the form of a green tax)

He said there was a realistic opportunity of £0.40p a litre in 10 years time, particularly if we mix in biofuels too.
 
#12
Utter, utter balls.

Lots of reasons why oil is expensive, and will continue to be so:

Firstly, oil is more expensive is because of rising demand in the (quickly) developing world - ie China, India etc etc.

Secondly, oil reserves are not a proven science - remember shell altering their 'proven reserves' by several hundred million barrels a few years back? this is because they shifted in their analysis of the seismic data they had.

Thirdly, all the new discoveries taking place are in areas that are particularly hostile - offshore Brazil (3000m water depth - very few rigs in the world can actually drill in this depth), HPHT wells in the North Sea, West Africa etc etc.

Fourth, look at the list of OPEC members, and point out the stable state? you cant, because there isnt one. Whilst these states sit on the oil reserves, they have an agenda to manage supply and demand - they balance price so that oil is not too expensive, and yet expensive enough to fund their own plans.

Fifth, Saudi Arabia / Aramco have announced a target oil price of around USD 55 per barrel equivalent brent light sweet crude. This would translate to around 80p per litre in the UK. This is the MINIMUM price they would allow oil to get to, as any lower and their fields become unprofitable - they would simply turn off the taps to restrict supply, forcing prices up.

Finally, oil traders are pushing the price up, not supply. By shorting stocks and then dumping at the end of the day, they push the price to new highs, then offload quickly - happens in any stockmarket in the world, only this one affects all of us.

Finally finally, biofuels are not all they are cracked up to be. The EU has already stated it will restrict the growing of crops for biofuel, as they harm food security (amongst other things). You will see a growing movement against biofuels in their current format over the next few years, with restricted growth led by quotas per acre etc etc.
 
#13
Daede said:
Also ref net import/export of oil, thats a really cr@p way of looking at oil production. Saudi Arabia is the biggest nett exporter of oil in the world, and yet imports petrol and marine fuels....
All their cash is spent buying consumer goods in the 'west' and Japan . Because a lot of these OPEC countries have the potential to be unstable, they don't trust their own to keep the cash home. (Similar to S. American drug cartels)
 
#14
We can dance round in circles forever with regard to the oil debate but can we dispel two myths right now?
Oil is plentiful, reserves are known to be suffuicient for the remainder of my lifetime, possibly more known reserves than there has ever been.
Fuel isn't expensive, infact its perfectly reasonably priced, its the fecking tax we are paying on it that is extortionate. Take off the tax and its about 50 Pence a litre at the pump.
Lie's and spin, mostly propogated by goverernment. The environmental bollox is highly dubious data and the "high price" we are paying is almost entirely down to revenue pillaging by the cnut Brown.
 
#15
Jagman.

1. Wrong. Unproven reserves are the highest they have ever been (ie 'This bit looks like it might have trapped 4 billion barrels - stick it on the balance sheet Bob!'.
Proven reserves are depleting in line with increased consumption. Bearing in mind the largest, longest life fields such as Ghawar, AL Khafji, Ekofisk etc etc have been in production for more than 30 years, they can be expected to run dry within your life time (assuming your not 80yrs old).

2. Fuel isnt expensive / tax etc etc - spot on. We pay about 70p per litre tax, and there is the fuel escalator tool to allow the tax take to increase in line with the rising fuel price.

3. Not sure what you mean by environmental bollox - if you mean emissions, then they are proven as damaging to the environment. If you mean exploration - the seabed subsidence around Ekofisk would be fairly comprehensive proof that drilling for oil damages the earths physical structure etc etc.


I work in the industry, and whilst i am all for oil exploration / consumption, you do need to be a bit realistic about the motivation of the organisations involved, and the effects that hydrocarbons have on their environment (both locally and globally).
 
#16
Daede said:
Jagman.

1. Wrong. Unproven reserves are the highest they have ever been (ie 'This bit looks like it might have trapped 4 billion barrels - stick it on the balance sheet Bob!'.
Proven reserves are depleting in line with increased consumption. Bearing in mind the largest, longest life fields such as Ghawar, AL Khafji, Ekofisk etc etc have been in production for more than 30 years, they can be expected to run dry within your life time (assuming your not 80yrs old).
As I understand it reserves are currently estimated at about 70 years (I would be highly surprised if I'm still alive then). I distictly remember that in the 1970's we were all informed we would run out of oil in 30 years.
I will take your word for your information, I do know two geologists working in the North Sea who spend al their time on a drilling rig drilling and capping off supplies for future use. New reserves are being found all the time and as I understand it (although again, if you tell me otherwise I have no reason to doubt you) these new reserves are found quicker than we are currently consuming.

Daede said:
2. Fuel isnt expensive / tax etc etc - spot on. We pay about 70p per litre tax, and there is the fuel escalator tool to allow the tax take to increase in line with the rising fuel price.
Agreed, we are ripped off mightily, more to the point pump prices are killing the economy off, the 5 star feckwit we have as a PM can't see this through his rose tinted monocle. Reduce fuel taxation massively, financial growth will follow suit if only for the reason it puts money back in peeoples pockets. Ergo spening increases because people actually have something left over from taxation to spend.

Daede said:
3. Not sure what you mean by environmental bollox - if you mean emissions, then they are proven as damaging to the environment. If you mean exploration - the seabed subsidence around Ekofisk would be fairly comprehensive proof that drilling for oil damages the earths physical structure etc etc.


I work in the industry, and whilst i am all for oil exploration / consumption, you do need to be a bit realistic about the motivation of the organisations involved, and the effects that hydrocarbons have on their environment (both locally and globally).
I will try to avoid turning this into a debate on glaobal warming other than to say I (and countless millions of other people) don't buy the package we are being sold. I don't dispute that we need to clean up our act but I do dispute mankind is responsible for gloabal warming.
Enviromental taxes are just taxes, they are of no benefit to us and they are of no benefit to the enviroment.
Like I say, I have no desire to turn this thread into an enviromental debate but thats my opinion.

The fact remains that we aren't imminently short of oil, we have plenty of time to replace oil as our primary energy source without wasting billions on hare brained schemes that are of little benefit to man or the planet (bio fuels for example)
High oil prices, oil shortages and enviromental issues are being used to extort more money from us by government, we are being financially raped on that basis but thats the only reason.
 
#17
I'd agree with all that (apart from the environmental bit, but lets leave that alone).

Ref your geologist friends - they wont be capping off significant reserves (if they were significant, there would be infrastructure to get them producing immediately).

Also, the North Sea spot market is based around rig movement and supply - the North Sea is basically a great big bit of swiss cheese with thousands of wells in it. Lots of small fields.
The remaining oil within the north sea also tends to be HPHT wells, which are a b@stard to exploit.
 
#18
Daede said:
I'd agree with all that (apart from the environmental bit, but lets leave that alone).

Ref your geologist friends - they wont be capping off significant reserves (if they were significant, there would be infrastructure to get them producing immediately).

Also, the North Sea spot market is based around rig movement and supply - the North Sea is basically a great big bit of swiss cheese with thousands of wells in it. Lots of small fields.
The remaining oil within the north sea also tends to be HPHT wells, which are a b@stard to exploit.
Like I say, I quite happily accept your points on reserves.
I will go further on some of the other points and say that both in terms of enviromental impact and quantity of oil reserves man has ample time to come up with a practical alternative to oil.
Taxation merely penalises the public and industry, it is not an acceptable or effective method of developing alternatives.
 
#19
I would agree wholeheartedly with your comments there.

I dont know who said it, but 'No Country ever taxed its way to prosperity'.
 
#20
Daede said:
I would agree wholeheartedly with your comments there.

I dont know who said it, but 'No Country ever taxed its way to prosperity'.
Not sure but I think the rest of it goes:

".....but a good many have taxed their way into the economic abyss. "

However, the source may be this:

""We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."

Winston Churchill
 

Similar threads

Top