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As oil price hits a record, follow industry example and take long-term view



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Published Date:
12 March 2008
I WAS at the Scottish Oil Club annual dinner last week, the get-together for everyone who is anyone in the North Sea petroleum and gas business. Oil men and women (there were two on my table from Shell) look at the economy differently from bankers or house builders. The fossil fuel business thinks ultra long term.
The fact that the price of crude reached another record high yesterday ($109) might worry governments, but a company such as Shell wants to know what oil will fetch when the next big investment comes on stream – say in ten years' time.

What is cau...



The full article contains 1086 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 11 March 2008 9:05 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: George Kerevan
 
1

truthsleuth,

12/03/2008 00:56:36
The problem not recognised in this article is that the 1970's oil price rises created a situation where fund for investment in oil were available primarily because oil companies were the only ones that could afford to invest.
Investment funds for other industries were much to much expensive and so they stagnated and began the gradual deterioratin in the ability of the uk to compete in world markets.

Darling should not make it easier for the oil companies to invest he should insist on terms similar to those Norway applied and let the nation share in what oil wealth we have left.
Putting the 2p tax on fuel (or even a further increase with the funds used for investment in modal shift in transport would be a far superior long term strategy.
2

,

12/03/2008 01:15:50
Comment Removed By Administrator
Reason:
3

Neil,

Glasgow 12/03/2008 11:19:38
Another major reason is that the $ has fallen by about 40% in recent years which means that $109 of today's dollars is abot $66 previous oneswhich looks much less spectacular.

The technological progress which makes the enormous reserves of shale & tar sands now useable at under $20 a barrel is understood by the oil companies, which is why they are more worried about long term falling than rising prices.

 

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