• 8 hours Theresa May Wants To Extend The Brexit Transition
  • 2 hours Uber CEO sees commercialization of flying taxis within a decade
  • 8 hours NASA Spends $1 Billion For a Launch Tower That leans, May Only be Used Once
  • 12 hours Plastic bans to dent oil demand growth-BP
  • 2 hours Ideas on demand
  • 11 hours Iran To Recover War Losses By Exploiting Syria Natural Resource !?
  • 2 hours Apple in Talks to Buy Cobalt Directly From Miners
  • 3 hours German Neo-Nazis Are Trying To Infiltrate Daimler: Works Council
  • 1 day US to rejoin Paris climate pact by 2020?
  • 2 hours Vanadium: The Next Star in Batteries?
  • 12 hours Tesla's cloud hacked, used to mine cryptocurrency
  • 6 hours Venezuela's New Bitcoin: An Ingenious Plan or Worthless Cryptocurrency?
  • 1 day Exxon sues the suers in climate-change case
  • 12 hours We're worried about US shale production, while OPEC calls for $10 trillion investment to meet demand?
  • 5 hours API Inventory Data (Tuesdays)
  • 18 hours Elon Musk’s Boring Company Gets Green Light to Start Digging in Washington, DC
Saudis Ready To Swing Oil Market Into Deficit

Saudis Ready To Swing Oil Market Into Deficit

Saudi Arabia is taking an…

The Dollar Decides The Fate Of Oil Markets… For Now

The Dollar Decides The Fate Of Oil Markets… For Now

Markets remained volatile, but oil…

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