Is the party over? Australian oil and gas companies report huge losses

Is the golden age of the oil and gas industry almost over? ...

Looking at the downturn in global oil prices it might seem that way for Australia.

Oil and gas companies are reporting losses, the industry is shedding jobs and oil prices continue to
decline.

Production was 7% up for the year but because of the lower crude prices, profits are down according to Santos, as they posted a 99% fall in profits for the 12 months to December 2015. The dramatic fall in profit also includes write downs on various assets of A$3.92bn over the year, according to the BBC.

They're not the only ones! 

Recently the BBC reported that Woodside put its dramatic decline in profits down to the global fall in oil prices (down by over 45% in 2015).

Is this a case of price fluctuations due to global political manoeuvring, inappropriate regulation crippling the industry in Australia, or is the oil age coming to an end because of a lack of demand?

Royal Dutch Shell is laying off thousands of workers and its chief executive is preparing the company to try and be profitable if there is an extended period of low oil prices according to City A.M. If you look at all the major oil and gas players, in Australia they have shed a good number of employees, according to Peter Botten, Managing director of the Australian listed Oil Search, in an interview with the ABC. He says that a quarter of the oil and gas industry jobs have gone (during 2015) based on numbers of employees employed directly by oil and gas companies.

A year ago, the news of world oil price falls were shocking (as oil prices fell from over $100 to around $50 a barrel). Because there was so much being pumped out of the ground and not enough industrial demand in the world to use it all – people thought this dip in prices would be temporary.

But those hopes have now faded!

Some cmmentators have projected that thirty years from now there will be a huge amount of oil – and no buyers.

Oil will be left in the ground.
The Stone Age came to an end, not because we had a lack of stones, and the oil age will come to an end not because we have a lack of oil.





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Note: How is the global crude price decided? Brent crude has overtaken WTI as the global crude price index, as Energy and Capital Explains. International benchmark Brent crude this morning is up by around two per cent at $33.08, however US West Texas Intermediate jumped by over over four per cent to $32.84, up from under $30 at the close of oil trading on Friday 19th February 2016, according to City A.M. comparing the current price comparing the two benchmarks.





Blogs/Links:

Oil and Gas Investor

The Barrel Blog

The Oil and Gas Journal has a good list of blogs

A list of the 6 Best Oil and Gas Websites

The Oil Drum Discussion page

Commodity HQ has a list of 7 crude oil trading blogs

SherWare has a list of 5 favourite blogs

Peter Leeds has a list of Oil and Gas Blogs and News websites

New Year's resolutions

Because its that time of the year and people are working on their resolutions, here's one I found, from blogger Simply Seleta that's as good as any.  

If nothing else works and life gets you down, simply wear the pearls. 


Another piece of wisdom I also like

... and one I am really trying to do: 








that one I really believe.... energy is magic. 

Speaking of magic, recently I started eating quinoa, obviously with other foods, and honestly its really tasty and versatile and I'm told really healthy. Told by people like the inspiring Julie Montagu .. I am making her kale chips recipe as we speak.... 

So what if seizing Assange breaks international law???

So what if seizing Assange breaks international law??? 

Where is the police force that's going to police the Vienna Convention on Diplomatic Relations?  

There are a lot of stories about what will happen to Julian Assange and some commentators are suggesting that the UK government could find itself hauled before an international court if it moves in on the Ecuadorian embassy where WikiLeaks founder Julian Assange has been granted political asylum.

There have been a number of options/scenarios speculated upon as ways out of Assange.   Assange could just stay put in the hope that the situation he is facing will eventually get resolved, either politically or through Sweden dropping the case.  Provided British authorities choose not to storm the Ecuador embassy, waiting it out could be an option for Assange, says Prof Don Rothwell of the ANU.

The rules governing the rights of foreign embassies were set out in the 1961 Vienna Convention on Diplomatic Relations international treaty, of which US is a signatory. This particular situation is complicated by a domestic law, the Diplomatic and Consular Premises Act of 1987. It was enacted after shots were fired from the Libyan People's Bureau in Central London in the 1980s.  This law could allow Assange to be arrested within the embassy premises, according to CBC News.  

Don Rothwell thinks otherwise. The legislation refers to considerations of national security but the other grounds wouldn't seem to have any relevance. So national security is clearly a fairly high threat, it would clearly be associated with terrorist related type incidents. But, Mr Assange's situation does not seem to have reached that level. 

This situation raises many questions, like - what is the status of the obligations/rules under the Treaty vs the obligations/rules under the domestic law, for one?  This is where the rubber hits the road.  

The way this issue is resolved will have an impact on diplomacy and the rights/protections afforded to diplomats in foreign countries.  It could have wider repercussions in setting a precedent about domestic law status in relation to international law.  Sometimes Australia looks to UK court decisions in actions, so these events are not only of relevance to that country, but could have wider implications.

Should the UK take the action it seems intent on, it could breach the major rule in international law - the inviolability of embassies.  In response Ecuador could take matter to the International Court of Justice.  

Individuals can't bring an action to the International Court of Justice, so those reports about Julian Assange having the option of going to the ICJ, are ill-informed.  The other country that could go to the ICJ is Australia, if it wanted to. This seems unlikely, as the Government has shown no interest.  Sweden, of course could also bring this matter to an end very quickly, if it wanted to.

The sky was so beautiful today, I just had to take a picture of it  

This was around 3pm, allegedly it was 11oC out, but I suspect it was warmer.  Ever since I've given up the dreaded institutional confinement of employment I have been like a prisoner released, looking up at the sky regularly, throwing my arms open to the world and smiling.

Today clocked in 40 minutes of intermittent running.  Ever since starting the regular running experience, I have used more band aids than in my whole life combined before that.  Its the only way to  prevent blisters.  I don't know why, well, I do - my feet are so delicate - but if I don't put them on my toes I end up suffering.

This isn't the blog of one of those triumphantly enthusiastic runners.  I am at the stage of running for 200 paces and then walking then running for 200 paces and so on.  You have to start somewhere, and this is where I'm starting.  Kelly Killoren Bensimon says - take 20 minutes a day and be playful. Actually she suggests a 20 minute jog a day to stay in shape.

At this stage, three times a week is what I'm aiming for.  Three times a week to just enjoy the sky, the air and the neighbourhood - what a joy!

weekend sale

There's only one reason to ever go to Queanbeyan and the Fink seconds sale is it.

http://www.finkdesign.com/products/designerware.html

Zagreb j'taime

There's another name to add to Paris Tokyo New York street fashions - its Zagreb.  First check out the pictures of this stylish old lady on styletone and then check out the street styles!

Did Australia incite unrest in Timor Leste

Why would Australia do that?


I suspected the government were evil, but I didn't realise they were this evil
according to new matilda
citing  a wikileaks source from a cable from the US embassy in Lisbon well and truly sticking the boot in!!!


What's it all about Alfie???

Resources, resources, resources, of course.