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Thread: No more Brent crude oil!

  1. #1
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    No more Brent crude oil!

    Extracted from today's WSJ:
    The two crude prices listed on the commodities exchange are Brent and WTI (West Texas Intermediate Crude)
    By Sarah McFarlane
    Dec. 2, 2019 6:06 am ET

    The world’s most famous oil and gas field—and the backbone of global crude pricing—has dried up. Soon the Brent benchmark will have no Brent oil.

    Royal Dutch Shell PLC is expected next year to plug the last remaining Brent oil wells, located in the North Sea’s East Shetland Basin, about 115 miles northeast of Scotland’s Shetland Islands. The closures mark the end of an era, as the industry shifts its focus to smaller oil finds near existing infrastructure.

    Many companies are shutting down platforms above massive fields discovered in the 1970s, but Brent stands apart as one of the first and most significant of these finds. The field has generated billions of dollars for Shell, its partner in the field, Exxon Mobil Corp. and the U.K. government.

    In the late 1980s, Brent crude became the benchmark on which most of the world’s oil is priced and is still used to set the price of the multi-trillion dollar Intercontinental Exchange Brent futures market.

    “The role it has played is a cornerstone for this industry now for 40 plus years,” said Steve Phimister, vice president of upstream and director of U.K. operations at Shell.

    The Brent benchmark will keep its name and increasingly represents a blend of North Sea crudes, with the potential to include oil from other locations in the future.

    Shell discovered the field in 1971 and named it after the brent goose, keeping with the seabird theme the company used for naming its discoveries at the time. Developing it was a huge and expensive undertaking. Standing as tall as the Eiffel tower, Brent Charlie, the last active platform of Brent’s original four, was built to withstand some of the most hostile conditions on earth.
    "A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty” ---Sir Winston Churchill

    "Political extremism involves two prime ingredients: an excessively simple diagnosis of the world's ills, and a conviction that there are identifiable villains back of it all." ---John W. Gardner

  2. #2
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    Maybe that news will send oil prices up a bit. Only for a short time, I'm sure - there is more than plenty oil production going on without the Brent field.
    The only way of discovering the limits of the possible is to venture a little way past them into the impossible - Arthur C. Clarke

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    Quote Originally Posted by Mike View Post
    Maybe that news will send oil prices up a bit.
    I'd better go top off the tank in the mighty Dodge/Cummins...I hadn't planned to until next year, but why take a chance......Ben
    “Eschew obfuscation, espouse elucidation” - Mrs. Miller, third grade homeroom teacher...

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    I doubt it will make a difference. It has been higher than WTI for the last couple of years, prior to that they tracked more closely. The impact in the USA of the Brent price is primarily in the NE.
    "A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty” ---Sir Winston Churchill

    "Political extremism involves two prime ingredients: an excessively simple diagnosis of the world's ills, and a conviction that there are identifiable villains back of it all." ---John W. Gardner

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    I'm just thinking of the psychological impact. That's why it will be short lived when people come to their senses.
    The only way of discovering the limits of the possible is to venture a little way past them into the impossible - Arthur C. Clarke

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    Quote Originally Posted by Mike View Post
    I'm just thinking of the psychological impact. That's why it will be short lived when people come to their senses.
    Most will never even know
    "A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty” ---Sir Winston Churchill

    "Political extremism involves two prime ingredients: an excessively simple diagnosis of the world's ills, and a conviction that there are identifiable villains back of it all." ---John W. Gardner

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    Quote Originally Posted by Dave Grubb View Post
    Most will never even know
    The investors will, and they are the only ones that matter.
    The only way of discovering the limits of the possible is to venture a little way past them into the impossible - Arthur C. Clarke

  8. #8
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    You are going to see more fields closing or downsizing as the auto industry transitions to electricity. Just not going to be the demand for oil there once was.
    OPINION....a view or judgment formed about something, not necessarily based on fact or knowledge.

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    Quote Originally Posted by Truckman View Post
    I'd better go top off the tank in the mighty Dodge/Cummins...
    I'm glad I waited a couple of days...My regular station today lowered their diesel price six cents a gallon...I'll monitor it for a little while before I fill up......Ben
    “Eschew obfuscation, espouse elucidation” - Mrs. Miller, third grade homeroom teacher...

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