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New oil field found off Shetland

35 replies

ocelot41 · 27/03/2017 19:38

Does anyone here know about oil? How significant is this?

www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-39406131

OP posts:
Nyx · 30/03/2017 22:26

Fair enough. My issue though is that in order for oil production to be more viable in Scottish waters, the industry needs to be managed in a different way. I used to think that the fact that the UK government doesn't profit from oil the way Norway does, for example, was mismanagement. But (now you can call me a cynic) I have started to wonder if it is more like sabotage. I mean, come on. It seems oil companies pay tax everywhere but the UK/Scotland. We are actively subsidising them to take it, with tax breaks. Oil isn't worthless, even though the price has fallen. Westminster unionists are telling us that Scotland's oil is worthless, that is what they want us to believe.

LassWiTheDelicateAir · 30/03/2017 22:47

It might drive Shetland's independence

There was talk last time that if Yes had won Orkney and Shetland would ask to stay in the U.K.

GladAllOver · 30/03/2017 22:54

There was talk last time that if Yes had won Orkney and Shetland would ask to stay in the U.K.
The SMP think they have a right to leave the UK, but I suspect they would sing a different tune if Shetland wanted to leave Scotland Wink

GladAllOver · 30/03/2017 22:54

SNP !

Strix · 31/03/2017 11:03

So...
The United Kingdom leave the EU.
Scotland leaves the UK.
Orkney/Shetland leave Scotland.

Surely one has to work a little to keep a straight face. What crazy political times.

ocelot41 · 31/03/2017 20:42

Interesting stuff, folks. Pls excuse my ignorance of the oil industry but what do you need to do to decommission a rig? Why is it so expensive? What isn't this the responsibility of the oil company?

OP posts:
ocelot41 · 31/03/2017 20:43

Why isn't it the responsibility of the oil company?

OP posts:
GladAllOver · 31/03/2017 23:14

It IS the responsibility of the oil company, but under the terms of their drilling licence they can set the costs of decommissioning against tax.

This is effectively a huge government subsidy, without which it would not be economic for the oil company to drill offshore.

GladAllOver · 31/03/2017 23:20

It's expensive because the oil platforms have to be demolished in an environmentally safe way. The wells have to be capped and the pipelines removed without any oil leaking. It's very slow, potentially dangerous work in deep, rough water with high-tech equipment and highly paid skilled staff.

rogueantimatter · 01/04/2017 12:17

Apparently the geology of the new field makes it particularly difficult to extract the oil.

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