Post by qylssaa16 on Dec 19, 2014 3:27:58 GMT -5
The continued fall in the price of crude oil has put the UK oil industry under pressure, say experts. Photograph: Alamy Global crude oil prices slumped nike roshe run trainers further on Thursday, as traders placed fresh bets that the market would resume a six-month sell-off on worries about a supply glut. Benchmark Brent and US crude tumbled $2 a barrel each in late trading. With Brent back below the level of $60 a barrel and US crude under $55, traders braced for more selling in a market that has lost about half its value since June. While experts have warned that the UK’s oil industry is under pressure, some believe the falling oil price could benefit the UK nike roshe run sale economy. Robin Allan, chairman of the independent explorers’ association Brindex, said it was “almost impossible to make money” with the barrel price below $60. But accountants PricewaterhouseCoopers said the falling oil price “should be a net benefit to our economy as a whole, even if there are some losers in the UK oil and gas sector and in particular in places like Aberdeen”. While the oil price has plummeted, gas prices remain “relatively favourable” and provide “great opportunities” for investment, North Sea-focused company Independent Oil and Gas Plc said nike air max tn as it announced it is increasing its gas resources off the east coast of England. nike air max Allan, who is also a director at Premier Oil, told the BBC: “It’s almost impossible to make money at these oil prices. “It’s a huge crisis. This has happened before, and the industry adapts, but the adaptation is one of slashing people, slashing projects and reducing costs wherever possible, and that’s painful for our staff, painful for companies and painful for the country. “It’s close to collapse. In terms of new investments – there will be none, everyone is retreating, people are being laid off at most companies this week and in the coming weeks. “Budgets for 2015 are being cut by everyone.” Oil’s near 50% drop over the past six months began on worries about fast-growing US shale oil supplies and accelerated after Opec’s decision in November not to cut output. Oil companies have, meanwhile, announced cuts in exploration and capital spending. Chevron Corp has put on indefinite hold a plan to drill for oil in the Beaufort Sea in Canada’s Arctic while Marathon Oil cut its capital expenditure for next year by about 20%. Canadian oil producers also deepened cuts in 2015 spending, as Husky Energy, MEG Energy and Penn West Petroleum joined those scaling back capital budgets. Sign up for the Guardian Today Our editors' picks for the day's top news and commentary delivered to your inbox each morning. Sign up for the daily email