I see first hand on a daily bases what it costs companies to support offshore oil operations; even if you just look at the costs double or triple the workforce (2 weeks on 2 weeks off or 2weeks on and 3 weeks off) floatels, helicopopter filghts etc. None of these costs will be required in the Surrey countryside, so to say that it will cost too much to get it out of the ground is nonesense!
Well there you go - Oil companies obviously feel that producing oil offshore of greenland in a harsh and hostile environment hundreds of miles from land is more economically viable and easier to commision than sucking larger quantaties of the stuff out of a few fields in Surrey!!
Is it only the doom and gloom merchants that are attending the show??
Tiff - Can't understand why you sold so soon! This will multi-bag once it all plays out.
For what it's worth - I was at the UK Oil and Gas awards last year in Aberdeen. The format of the evening was a bit like the Oscars where different areas of the industry had nominee companyies who were put forward for awards. It was clear throughout the night that those who were judged as being the winners of each catagory were those companies who had came up with new technology to get more of the black stuff out of the ground. Technology developed to increase the life of wells was very much at the forefront. So maybe at this time there will be only 3 - 15% recoverable, but in a few years time they will find a way to get as much of the total extracted as possible. UKOG will not frack but this is because they will not be the ones removing the oil. Whoever buys the rights will do whatever it takes to maximise the oil recovered and i fully expect this to be fracked to the max! UKOG will be a sure fire winner IMHO for those who hold. On top of this the new government will have an excellent way of cutting down the national debt without having to do much work - all on the back of the revenues that this will generate so they will not stand in the way of whoever takes this job on.
ukog - Yeah it is a no brainer! Sod the derampers this will work out well in the longer term
Mattyboy - you are spot on! During the election campaign this won't be discussed due to fracking being so controversial. What they can easily get out of the ground will clear a third of the national debt and once they are able to show the huge benefits of this find the new government will do whatever it take to appease the public in terms of fracking. If it means getting even a further 10% out of the ground this will be tracked to the max. We are a oil greedy nation due to the amount of profits involved and with this being so cheap because it is on land and in our own country everything possible will be done to get as much of this out of the ground as possible.
Toyotaman - get real. They put platform in 300 feet of water in hostile environments and run pipelines 100s of miles to get the black stuff to market so I can see a few nodding donkeys in Surrey being much of an issue!