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Global update
Latest news from around the world.
UK pledge to end war on motorists
The Conservative-led UK coalition government has coupled a commitment to greener energy with a statement by the Secretary of State for Transport, Philip Hammond, that it will “end the war on motorists.” As part of this aim, the Treasury is considering a fuel duty stabiliser to provide stability at the pumps when oil prices rise, thereby protecting business and families on fixed incomes. The government will also scrap plans to charge road users for driving on existing roads.
EU offshore regulation review
The UK and the European Energy Commission are to look at tightening the regulations governing oil exploration in European waters following an assessment of the US safety review in the wake of the recent oil spill in the Gulf of Mexico. Though the regulations affecting the UK were reviewed after the explosion on the Piper Alpha rig in 1988, the Commission is keen to learn from any mistakes made on Deepwater Horizon.
Rig number review in the Red Sea
The Egyptian government is reviewing the number of rigs permitted to drill in the Red Sea following a spill close to the tourist resort of Hurghada on what is known as the Red Sea Riviera. Currently, 180 rigs operate in the Gulf of Suez.
Peak oil date revised
The International Energy Agency has announced that its 2009 prediction stating surplus oil would run out by 2013 was wide of the mark, and that we can expect to see surplus oil of approximately 3.5 million barrels a day throughout the next decade. Demand is predicted to increase on a yearly basis by 1 million barrels a day to an average of 90 million barrels a day.
Tullow stripped of two oil block agreements
Decrees issued by the President of the Democratic Republic of Congo have stripped UK firm Tullow of the rights to develop two oil blocks on Lake Albert on the Congo–Uganda border. The decrees awarded the drilling rights to the little-known companies Caprikat and Foxwhelp, both based in the British Virgin Islands. The blocks had been awarded to Tullow and its partners Heritage Oil and state-oil company Congolaise des Hydrocarbures under a $500,000 signing bonus in 2006.