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Big Oil upgraded from buyer of mineral royalties

Apr 8th 2015 at 3:35 AM

Aberdeen is the center of Europe's petroleum industry. Lying on the ground. The

drastic drop in price for the commodity falls across Scotland in the crisis. BY


So extinct Jake Molloy has the port of Europe's self-proclaimed oil capital not

seen in decades, "The lying here for days, which costs a lot of money ship-

owners," says the Scotland-chief of the oil workers union RMT, pointing to the

five supply ships before him. Side by side they moored at the dock of the Upper

"Oil Capital of Europe", as Aberdeen titled. Each of the steel boxes is almost as

long as a football field. All are armored against the meter-high Nordseewellen.

Diesel, mud, spare parts, food should bring the oil production platforms off the

coast of the ships. But they do not run out.


Gulls are scrambling to sandwich residues on the deserted quay. Nothing moves on

the Highland Endurance, the Indomitable, the World Diamond and the Pisces. Only on

the Olympic Hercules let men in neon yellow safety vests a bridge down: for a

delivery, the heranzockelt through the drizzle.


"There was always hectic, the ships had to quickly get to the platforms," says

Molloy. "What we see just scares me."

The mid-fifties with crew-cut know the signs of decline. For 17 years he was even

offshore, on the high seas. He has helped Brent to tap: Britain's most famous

field and namesake of the most important places in global crude oil futures

exchanges. He hails with grains as large as golf balls survived monster waves and

some ups and downs of the oil market. Once it has been released: 1986, when the

Brent price of 30 to less than 10 US dollars per barrel (159 liters) slipped, as

two out of five offshore workers lost their jobs, as thousands left Aberdeen. What

precisely in the industry abspiele, reminded him of 1986 says Molloy. "And now, as

then, will lay the groundwork for the next price boom."


Big Oil from upgraded. Good 2,000 jobs have Multinationals such as BP,

ConocoPhillips, Talisman Sinopec and hundreds smaller firms to Aberdeen recently

been painted. Shocked by the price drop of the raw material from 110 to

temporarily below $ 50 per barrel economists see this year up to 35,000 of the

approximately 225,000 jobs in Scotland's oil industry on the brink. Workers betray

one hand; some smaller platform operators have already stopped production. And, as

in Scotland save corporations around the world and put projects on hold, from the

Arctic to Mexico to the Falkland Islands. But the "big five" (ExxonMobil, BP,

Shell, Chevron and Total) have their investment budgets cut by $ 46 billion

compared to 2013. Soon, the reduction would have become apparent in the global

market. Aberdeen can feel it already.


The Scottish oil industry: from the cash cow for the rehabilitation case

exhibition center, a cold, wet Monday morning. Scotland's head of government

checked again her manuscript, then the petite blonde her mid-forties to the

lectern. Nicola Sturgeon has to open at Aberdeen's first oil crisis summit.

Everyone is here: industrialists, economists, their political adversaries.

"Scotland's oil and gas industry is a success story," Sturgeon calls in the hall.

She and her Scottish National Party are under pressure. "It's Scotland's oil" was

her old separatist slogan. Petro-pounds of taxes and licenses should finance

independence. But the citizens had not voted in the fall against the elimination

of London, Scotland had now a billion hole in the budget. Because the oil industry

of the cash cow is just a redevelopment case: One in three North Sea field is

making losses at a price of $ 50 a barrel, distributed, the industry association

Oil & Gas UK. Some companies are "about to collapse".


The industry could absorb the crash, hopes Sturgeon. Once the price put on, they

will write back profits and create jobs. Now, however, had the British state

coddle the industry. "There are tax breaks and investment incentives used, they

must be drastically come soon," the Prime Minister said after the speech against

the TIME. Great is the fear that the corporations otherwise deduct forever from

one of the most expensive oil spots in the world. Then "Aberdeen in ten years is a

ghost town" could, warn Colin Welsh, CEO of the US investment bank Simmons &

Company. uniroyaltiesdotcom


Jenny Laing fears for their Aberdeen. "As the price decline began in the summer,

everyone thought that these are normal variations. We could not believe that it

went on and on down," says the council chairman and powerful local politician. "We

have no control over this market. But we can create the optimal industrial

conditions on the ground." Precisely for this reason the mother city has convened

a crisis summit. Around 145,000 of the 480,000 residents of Aberdeen and the

surrounding Aberdeen shire work in the oil industry or its suppliers. "There is

hardly a family that no one in the industry," she says. My son has just finished

his offshore training.

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