Tags: london | airport | oil | find

London Airport: Oil Find Near Gatwick Has 'National Significance'

Image: London Airport: Oil Find Near Gatwick Has 'National Significance'
Equipment lies next to a shipping container housing exploratory well-head at Horse Hill, in Surrey, southern England, April 9, 2015. (Peter Nicholls/Reuters/Landov)

By    |   Thursday, 09 Apr 2015 04:36 PM

A British oil company announced Thursday that it found up to 100 billion barrels of oil on land near London’s Gatwick Airport, a find with “national significance.”

UK Oil and Gas Investments, an oil explorer, said indications from a well drilled at Horse Hill last year were that the area could contain as much as 158 million barrels of oil per square mile.

"We think we've found a very significant discovery here, probably the largest [onshore in the UK] in the last 30 years, and we think it has national significance," Stephen Sanderson, UKOG's chief executive told the BBC.

Even as company shares jumped from $1.68 to a high of $4.95, finally leveling out near $3.00, UKOG officials told the BBC that “a fraction” of the oil could be recovered. In comparison, the North Sea produced about 45 billion barrels in the last 40 years.

At the same time as UKOG announced its discovery, Britain’s Office of National Statistics put out disheartening numbers regarding the UK Continental Shelf companies.

“UK Continental Shelf companies, which are mainly involved with the extraction of oil and gas from the North Sea, have seen a dramatic fall in the net rate of return between 2013 and 2014, from 26% to 15%,” ONS said. “Although the profitability of these companies may have been affected by the recent decline in oil prices, they have seen their net rate of return decline since 2011, and therefore other factors may be relevant.”

UKOG’s chief executive Malcolm Webb spoke about the statistics on the company’s website.

“These shocking figures underline the very serious challenges the sector faces. After more than a decade of spiraling costs, over-taxation and weak regulation, the UK offshore oil and gas industry is now bottom of the league in terms of the cost of producing a barrel of oil and gas,” he said. “The UK’s difficulties have been greatly exacerbated by the sudden drop in oil price but it would be a grave mistake to believe that the price fall is the cause of the problem. A recovery in the price, even to $100 per barrel, would not resolve matters.”

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
TheWire
A British oil company announced Thursday that it found up to 100 billion barrels of oil on land near London's Gatwick Airport, a find with "national significance."
london, airport, oil, find
358
2015-36-09
Thursday, 09 Apr 2015 04:36 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved