• 4 minutes Blackouts in Australia
  • 7 minutes Big Oil Costs Can't Go Much Lower
  • 14 minutes The moves toward 'zero-manning' in oil & gas
  • 8 hours Jan's Electric bike replaces electric cars
  • 16 hours gas lines set 70 houses on fire simultaneously in Massachusetts, live now.
  • 22 hours Tesla Will Fix Its Cars In-House
  • 2 hours Funding Secured: Saudi Wealth Fund to Invest $1 Billion in Tesla's RIval Lucid to build its EV factory
  • 1 day Meeting For Better Peninsula: Kim Jong Un Will Meet Moon Jae In Pyongyang
  • 17 hours 100% Renewables will Fuel the Growth of Poverty and Homelessness
  • 1 day Coca-Cola eyes cannabis
  • 7 hours Bezos Rips Trump For ‘Dangerous’ Attacks on The Media
  • 1 hour Making Safe Nuclear Power from Thorium
  • 1 day Taller Is Better: A Race for Windmills
  • 12 hours Senate cancels postal service hearing
  • 15 hours Germany Should have Gone with Nuclear
  • 1 day Oil Higher As U.S. Iran Sanctions Raise Supply Concerns
New Fuel Efficiency Rules Could Boost Oil Consumption

New Fuel Efficiency Rules Could Boost Oil Consumption

The Trump Administration recently lowered…

Global Energy Advisory – 14th September 2018

Global Energy Advisory – 14th September 2018

As U.S. sanctions on Iran…

Forties Starts Pumping At 50% Capacity

North Sea

The Forties pipeline system in the North Sea has begun pumping crude oil at half of its normal capacity, an unnamed source from the trading circles told Reuters. The Forties system supplies 40 percent of the UK’s crude oil.

Ineos, the operator of the Forties pipeline, yesterday said it has started doing pressure tests on the pipeline after it was repaired. Full flow will resume in early January.“A small number of customers are now sending oil and gas through the pipeline at low rates as part of a coordinated plan that allows Ineos to carefully control the flow and pressure in the system,” the company said.

Ineos shut down the Forties system in early December, following the discovery of hairline cracks. Initially, the company said repairs could take anywhere from two to four weeks, sending Brent soaring above US$65 a barrel. The pipeline normally pumps about 450,000 bpd, although its capacity, according to its original operator, BP, was half a million barrels of crude. BP sold the Forties system to Ineos earlier this year for US$125 million.

After the shutdown, analysts polled by Bloomberg estimated that depending on how long the pipeline network remained shuttered, it could take between 5.5 million and 13 million barrels of crude off the global market.

Now, the UK’s energy industry body Oil and Gas UK has estimated that the shutdown has cost US$26.85 million (20 million pounds) in lost production daily. Because of the repairs, more than 80 platforms in the UK section of the North Sea had to stop producing but they are now coming back online.

Related: Aramco’s “Acquisition Hit List”

Following the latest updates from Ineos about the Forties system, both Brent crude and WTI started sliding, though still keeping higher than they traded before the shutdown announcement.

At the time of writing, Brent crude changed hands at US$65.75 a barrel, while WTI traded at US$59.56.

By Irina Slav 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