• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 1 hour The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 1 day Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 1 hour Greenpeace claims one oil rig is "pushing the world closer to a climate catastrophe"
  • 2 days As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 19 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 6 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 1 day Never Knew Gasoline Prices were this important!
  • 1 day The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 24 hours Plants are Dying
  • 5 hours Emmissions up, renewables nowhere
  • 1 day We Are Better Than This
  • 2 hours Middle East on brink: Oil tankers attacked off Oman
  • 1 day (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

A Loophole Is Revitalizing Old Oil Fields Here

Some interesting news from the U.K. North Sea last week.

Suggesting that this mature petroleum regime may be headed for some significant changes. And possibly increased production.

The news came from mid-tier player Canadian Natural Resources. Who announced they have secured a new kind of tax break from the U.K. government.

Specifically, a "brownfield allowance" (also known simply as BFA).

The BFA program was started by the government here in 2012. In order to spur development of aging fields that are becoming more and more common.

Since the introduction of the BFA program, Canadian Natural has been busy revamping three of its North Sea oil projects. Drilling new infill and injection wells on old fields, in order to grow production.

The company then submitted these development expenses to the government under the BFA program. And has now been approved for a "property development allowance" that can be claimed against future taxes.

The reduced taxation is designed to encourage more development drilling like this. Along with the upgrade or new construction of production facilities needed to keep oil and gas flowing.

The scope of Canadian Natural's current BFA plans is modest. Consisting of two infill wells on the company's Tiffany field. Along with four new producing wells, four injectors and two well upgrades at its Ninian field.

But even that scale of drilling could have an important impact on production. And if the trend catches on across a wider number of brown fields projects, it could help lift overall U.K. output.

This is just one more measure from a proven petroleum district that continues to re-invent itself. The policy shift may be especially timely, given that some established players here are starting to pull out. Such as Wintershall, which recently sold its U.K. project portfolio to MOL for $375 million.

The shuffle may give savvy firms an opportunity to pick up good acreage. And use credits like BFAs to breathe new life into these fields.

Watch for new junior players emerging.

Here's to what brown can do for you,

By Dave Forest




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News