Are the government misleading us all about oil prices.....You MUST read this...

Herbie21

I know that this is not quite the right place to post this but it is relevant to debt problems etc.


Is the wool being pulled over our eyes ????

We are being told that the high price of oil is becuase of US prices etc and then we see the following press release today that states that:

A Major oil pipeline providing 30% of the Uk's daily output is to close tonight.

BP's Forties oilfield brings in 700,000 barrels a day from the North Sea.

In other words we are providing nearly a third of our entire oil supply from our own reserves in the North Sea........so why are we all paying so much ???????

Answers on a postcard please....

zultan

fuel prices are high because of the extortionate rate of tax we pay to the government. For every £20 of fuel, £17 is tax!!

LilacPixie

Forties brings in 700,000 barrels a day to kinelli when the UK needs around 1.5 million barrels for actually its closer to 50% (46%) it also brings ashore around 20% of the uk's natural gas.

With the laws of supply and demand then i would say if anything fuel costs will be away to climb higher and higher in the coming weeks until this grangemouth thing is sorted.

ZTD

Because if you weren't willing to pay that price - it would go to someone else who was.

The high price of oil is because people are willing and able to pay high prices for it.

poppy10_2

Oil is priced in US dollars, so the weakening dollar increases the price.
Plus just because it comes from the North Sea, doesn't mean global demand won't push the price up.

Herbie21

zultan wrote: »

fuel prices are high because of the extortionate rate of tax we pay to the government. For every £20 of fuel, £17 is tax!!

Already petrol prices in our local garage have increased by 3p today......which is even more tax into the government coffers.....

ZTD

poppy10 wrote: »

Oil is priced in US dollars, so the weakening dollar increases the price.

But only the price in dollars. We buy using pounds (the intermediate dollar step cancels out). It depends on the strength/weakness of our own currency.

d123

Herbie21 wrote: »

In other words we are providing nearly a third of our entire oil supply from our own reserves in the North Sea........so why are we all paying so much ???????

.

It seems more complicated, from a quick google UK supply is even greater than that coming through the 40's pipeline. It seems a lot more than 30% is UK sourced oil.

[FONT=Arial, sans-serif]
Onshore[/FONT]

• [FONT=Arial, sans-serif]Wytch Farm – operated by BP in Dorset is the largest onshore oil field in Europe (65 million[/FONT][FONT=Arial, sans-serif] tonnes). Oil is piped from Wytch Farm to BP’s Hamble terminal on the South Coast from where it can be exported or supplied to Esso’s Fawley refinery.[/FONT]


• [FONT=Arial, sans-serif]Singleton, West Sussex - situated across the valley from Goodwood Racecourse (several other[/FONT][FONT=Arial, sans-serif] prospects along strike on the South Downs).[/FONT]


• [FONT=Arial, sans-serif]East Midlands oilfield, centred on Eakring, Nottinghamshire, and extending up to Eskdale, North[/FONT][FONT=Arial, sans-serif] Yorkshire and the Pickering / Kirkby Misperton structure under Ryedale.[/FONT]

[FONT=Arial, sans-serif]Offshore[/FONT]

[FONT=Arial, sans-serif]Over 300 fields.[/FONT]
[FONT=Arial, sans-serif]There are 100+ offshore oil pipelines in the North Sea.[/FONT]
[FONT=Arial, sans-serif]http://www.og.dti.gov.uk/information/bb_updates/appendices/Appendix14.htm[/FONT]


[FONT=Arial, sans-serif]Most of the crude oil produced in the North Sea is pumped by pipeline to the major offshore receipt terminals at Sullom Voe (Shetlands), Flotta (Orkney’s), Grangemouth (Nr Edinburgh) and Teeside.[/FONT]
[FONT=Arial, sans-serif]Crude ships load the crude oil at these terminals and ship it all over the world. [/FONT]

[FONT=Arial, sans-serif]Much of the oil goes to America which favours the North Sea’s low sulphur and high potential petrol content over local consumers. UK refineries, which are some of the most sophisticated in the world, are able to run on heavier (and cheaper) high sulphur crudes from Russia and the Middle East.[/FONT]

from this linked pdf
UK_oil_supply_chain.pdf

Gangstabird

Don't understand an awful lot about this, but isn't the NSO going to be depleted in a couple of years?

LilacPixie

Gangstabird wrote: »

Don't understand an awful lot about this, but isn't the NSO going to be depleted in a couple of years?

Nope, new technologies and advances in drilling techniques means they have a conservitive estimate of 50 years left with even more pockets left unexplored.

Herbie21

ZTD wrote: »

Because if you weren't willing to pay that price - it would go to someone else who was.

The high price of oil is because people are willing and able to pay high prices for it.

But the price in the UK is higher than anywhere else......Who else would want it at the same price.


It is not so much about the price of the oil....it is the tax that we are all being charged..for something that we produce ourselves !!!