• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 56 mins Climate Change: A Summer of Storms and Smog Is Coming
  • 14 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 4 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 4 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 2 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 13 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 3 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 15 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 12 hours Itt looks like natural gas may be at its lowest price ever.
  • 1 day students walk out of school in protest of climate change
  • 11 hours Saudi A to Splash $100 Bln on India
  • 6 hours NEW FERUKA REFINERY
How Robo-Taxis Will Impact Oil Demand

How Robo-Taxis Will Impact Oil Demand

Vehicle automation is all but…

The Biggest Problem Behind The U.S. Shale Boom

The Biggest Problem Behind The U.S. Shale Boom

U.S. shale production is set…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Britain’s Most Important Oil Pipeline Down Again

oil pipelines

The Forties pipeline had to be shut down for the second time in two months on Wednesday, leaving buyers worried about the infrastructure behind Britain’s oldest and most important oil route, according to a new report by Reuters.

Operator Ineos said the facility should begin transporting fuels at its normal rate of 450,000 barrels per day overnight. The company acquired the Forties network from British Petroleum two months ago for  $125 million.

Last December, a crack caused Forties to shut down for three weeks, prompting Ineos to call a force majeure on its export contracts. Oil prices shot up after the announcement. The January crude loading program was changed with 13 cargoes deferred from December to January as a result, and another 12 cargoes were deferred from January to February.

This time around, a set of values supplying the Kinneil plant closed without warning, cutting off some of the pipeline’s usual customers.

“When these valves close, then this requires FPS (Forties Pipeline System) to shut down the pipeline system and its customers in the North Sea,” it said.

Royal Dutch Shell and Total had to stop production and exports at two fields due to the shutdown this week.

Related:  The World’s Biggest Oil Benchmark Could Change Forever

Forties pipeline is a key transit route for North Sea oil and the Forties crude blend is the largest component of the Brent-Forties-Oseberg-Ekofisk-Troll (BFOE) complex, which is the basis for the Brent futures contract. The Forties pipeline carries some 40-45 percent of the UK’s liquids production and more than 80 fields feed into the pipeline.

The UK’s energy industry body Oil and Gas UK has estimated that the shutdown had cost $26.85 million in lost production daily. The ordeal was thought to remove between 5.5 million and 13 million barrels of oil from the market by the time the pipeline was restarted, according to Bloomberg.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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