Most significant on-shore oil find in the UK for 30 years

vivatifosi

This was just breaking news on BBC Breakfast, so no link as yet.

Beeb reporting that the most significant onshore oil find in 30 years in the UK has been identified. It's been found at Gatwick, near the airport.

Early days, so no data yet on the real size of the find, but it is said to be significant, and could allow for the UK to be self-sufficient in oil. Furthermore it is a conventional find and will not need fracking.

It was initially reported last year:
http://www.theguardian.com/business/2014/oct/24/oil-gatwick-airport-surrey
But now appears as though it could even be larger.

BBC has put up on their website while I've been typing... could be 100bn barrels, but not all recoverable:
http://www.bbc.co.uk/news/business-32229203

Generali

Does this mean Gatwick is now technically in Scotland? :eek:

vivatifosi wrote: »

This was just breaking news on BBC Breakfast, so no link as yet.

Beeb reporting that the most significant onshore oil find in 30 years in the UK has been identified. It's been found at Gatwick, near the airport.

Early days, so no data yet on the real size of the find, but it is said to be significant, and could allow for the UK to be self-sufficient in oil. Furthermore it is a conventional find and will not need fracking.

It was initially reported last year:
http://www.theguardian.com/business/2014/oct/24/oil-gatwick-airport-surrey
But now appears as though it could even be larger.

BBC has put up on their website while I've been typing... could be 100bn barrels, but not all recoverable:
http://www.bbc.co.uk/news/business-32229203

Wiki Expert Alert!
That means perhaps 40,000,000,000 barrels of recoverable oil (normal recovery rates are 10-60%, some are 80%). To put it into context, that's about what has been pumped out of the British North Sea so far.

It's Britain's Oil!

michaels

Remember the 80s when sterling became a petro currency and Dutch Disease saw a premature end to vast swathes of UK manufacturing? I'm only saying that every silver lining has a cloud...

Generali

michaels wrote: »

Remember the 80s when sterling became a petro currency and Dutch Disease saw a premature end to waste swathes of UK manufacturing? I'm only saying that every silver lining has a cloud...

Best fire up the investment banks again because they seem to be the only ones that can compete with the oil industry in the UK!

vivatifosi

Given that we're currently in the run up to the elections, it will be interesting to see what the politicians make of this and whether they bring it up.

As that the Green party's only UK seat is just down the road, it will be interesting to hear their take on it.

onlyroz

Let's hope we do something more useful with it than burning it.

Jaguar_Skills

Does anyone have any insight into what results may come of this? Economically etc?

Generali

According to the RNS (Stock Exchange Regulatory News Service) today

http://irservices.netbuilder.com/ir/ukog/newsArticle.php?id=1452959&ST=UKOG

US analogues have estimated recovery factors of between 3% and 15% of Oil in Place

I would however say, Beware small oil companies bearing news of oil strikes! It's funny how they never end up quite as big as they were hoped to be.

chewmylegoff

Jaguar_Skills wrote: »

Does anyone have any insight into what results may come of this? Economically etc?

Yes. It will make no noticeable difference to your life or standard or living unless you happen to live right next to it, in which case you might have to put up with some odious environmental protesters for a few years.

Generali

Jaguar_Skills wrote: »

Does anyone have any insight into what results may come of this? Economically etc?

If there really is 100,000,000,000 barrels of oil in there, the recovery rate is 5% (i.e. on the low side) and the oil price remains at $50/bbl then the value of extracted oil will be about $250,000,000,000. It will take ages to extract that oil; decades I would imagine.

Maybe there's an annual £10,000,000,000 uplift to GDP as a result of the find. An improvement in the trade current account (often referred to as the balance of payments) of the same amount. On the down side the 'Dutch Disease' means the value of the Pound is increased and so other exporters aren't as competitive so some exports fall.

torbrex

vivatifosi wrote: »

Given that we're currently in the run up to the elections, it will be interesting to see what the politicians make of this and whether they bring it up.

As that the Green party's only UK seat is just down the road, it will be interesting to hear their take on it.

The greens will find a way to stop it, they object to everything energy related, even so-called green energy.