LGW 100 Billion Barrels Of Oil Discovered

Gazdon121 · Thu Apr 09, 2015 7:58 am

not sure which forum to post this in

there is estimated to be 100 barrels of oil discovered below LGW its the largest oil find in the UK for 30 years. don't think there be going dry for a while

http://news.sky.com/story/1461413/oi...nd-near-gatwick-may-be-world-class

regards

bill142 · Thu Apr 09, 2015 10:10 am

Now we can have threads about BA getting free oil

par13del · Thu Apr 09, 2015 10:23 am

Now BA and its UK premium supporters will have more push to get the airport closed as the oil is more important from a national security perspective than the airport.
So in short order, LGW will be closed for oil extraction, LHR will get a single additional runway to maintain its prestigious place in UK aviation (imagine the demand and price for slots) as the oil industry will need additional access to the London area.
All in all boom times coming to LHR, heck they may even go the other way around and increase restrictions, hmmmm

cobra27 · Thu Apr 09, 2015 11:38 am

I think it is just a fake news.

Suddenly the UK has one of the biggest oil reserves in the world

BlueShamu330s · Thu Apr 09, 2015 11:45 am

Dear UK

We rescind any plans for another Scottish independence referendum.

With kindest regards to our dear English friends

Nichola Sturgeon and your SNP chums. xx

MCO2BRS · Thu Apr 09, 2015 11:54 am

I'll be out in the back yard with a hose pipe and a bucket and spade *BRB*

aireuropef100 · Thu Apr 09, 2015 12:14 pm

Its actually across majority of the South of England just happens that the drilling has been done 2 miles north of Gatwick - nowhere near the flght path.

http://www.bbc.co.uk/news/business-32229203

And despite 100 Billion barrels being mentioned it looks like only 15% max can be extracted - but anyway - some cash bonanza in the south and yet more people looking for land to build on ......

PlymSpotter · Thu Apr 09, 2015 12:35 pm

Even if the recoverable quantity is at the low end of the 5-15m billion barrel upper estimate, this is incredibly significant.

Dan

Revelation · Thu Apr 09, 2015 12:46 pm

Now we know why EK is adding the 2nd A380 to LGW!

cloudboy · Thu Apr 09, 2015 12:53 pm

Thinking creatively, would it make sense to build a refinery right there? Turn as much of the crude into aviation fuel, and use it right at the airport. This could give BA a significant advantage if it had a nice close by fuel source.

masseybrown · Thu Apr 09, 2015 2:49 pm

The Pittsburgh Airport is attempting to demonstrate that air traffic and drilling rigs are compatible in close proximity - so far, so good.

SCQ83 · Thu Apr 09, 2015 3:21 pm

So will flights to LGW become oil routes?

stburke · Thu Apr 09, 2015 3:37 pm

Quoting MasseyBrown (Reply 11):
The Pittsburgh Airport is attempting to demonstrate that air traffic and drilling rigs are compatible in close proximity - so far, so good.

I believe DIK and ISN have had drilling ops/pump jacks on their property for years. Great for the airport, helps keep costs low.

flightsimer · Thu Apr 09, 2015 3:53 pm

Quoting MasseyBrown (Reply 11):
The Pittsburgh Airport is attempting to demonstrate that air traffic and drilling rigs are compatible in close proximity - so far, so good.

Was just going to say the same thing. The first rig is already up, and appears to be running but I am not completely sure of that. They are preparing 6 other sites on airport property as well. One appears to be just a few hundred yards away from 28L/10R based off of where I had seen them grading at.

Devilfish · Thu Apr 09, 2015 4:15 pm

Quoting cloudboy (Reply 10):
Thinking creatively, would it make sense to build a refinery right there? Turn as much of the crude into aviation fuel, and use it right at the airport. This could give BA a significant advantage if it had a nice close by fuel source.

So we would see signs like this outside the terminals?...

...

http://www.flickr.com/photos/bp_imag...075945775/in/photostream/lightbox/

.....and iron horses on the tarmac...(kinda apt given the name of the well site)...

...

.
http://thecubaneconomy.com/wp-conten...45_1545135432_919312_5240924_n.jpg

LGW might become one huge fuel dock...

.

I could imagine the ME flooding the world with oil as a counter move...and airlines snatching up cheap A345s and 77Ls on the second hand market!

[Edited 2015-04-09 09:45:31]

aviatorcraig · Thu Apr 09, 2015 4:20 pm

Quoting cloudboy (Reply 10):
Thinking creatively, would it make sense to build a refinery right there? Turn as much of the crude into aviation fuel, and use it right at the airport.

I can just imagine how long the planning process would take for that one. The NIMBYs in leafy Surrey would be having a collective coronary!

Anyway, I think its all just a mistake, their test drill went off course and came up in Gatwick's fuel farm.

FlyingSicilian · Thu Apr 09, 2015 4:25 pm

Quoting MasseyBrown (Reply 11):
The Pittsburgh Airport is attempting to demonstrate that air traffic and drilling rigs are compatible in close proximity - so far, so good.

OKC does, and Houston Hobby used to and IIRC DFW has some natty gas

JAAlbert · Thu Apr 09, 2015 4:25 pm

You'd think this would be front page news -- I don't see any other newsite publishing this story ... Odd.

Aesma · Thu Apr 09, 2015 5:02 pm

Quoting aviatorcraig (Reply 16):
The NIMBYs in leafy Surrey would be having a collective coronary!

And not about the drilling ?

There are some oil fields near where I live (in Paris' suburbs) and NIMBYs made sure there was very little exploitation of them.

Gazdon121 · Thu Apr 09, 2015 5:04 pm

if any one out there could answer tat would know

would airlines get this fuel any cheaper as there be pretty much no cost to transport the oil as it is on the door step?

jetwet1 · Thu Apr 09, 2015 5:11 pm

Quoting cloudboy (Reply 10):
Thinking creatively, would it make sense to build a refinery right there? Turn as much of the crude into aviation fuel, and use it right at the airport.

It probably would, but there is zero chance of that happening, if/when they start pulling oil out of the ground it will be pumped down to Fawley and refined there.

SCQ83 · Thu Apr 09, 2015 5:14 pm

I have this dystopian image of South London becoming like South Dakota with fracking oil drills; and Gatwick expansionists, oil companies and real estate developers from Croydon fighting for the same land under your typical gloomy winter day in London.

Scary.

richierich · Thu Apr 09, 2015 5:15 pm

Quoting Gazdon121 (Reply 20):
if any one out there could answer tat would know

would airlines get this fuel any cheaper as there be pretty much no cost to transport the oil as it is on the door step?

In a word, NO. At least, don't hold your breath.

Pulling oil from the ground is a multi-step process, and even if the claims below LGW have any validity to them, one could figure years, if not decades, of burearacy and red tape from the government and local NIMBYs before a nodding-donkey is even brought near Gatwick Airport.

One the oil is tapped, it is still in a useless form, and needs to go through a refining process. This may mean a new refinery has to be built (again: government, NIMBYS, etc.) and then the finished product would go to market. OPEC oil is a highly competitve, highly regulated, and tightly controlled commodity, so it would hardly be simply allocated to any industry or airline.

It could benefit Britain in the long run, if the claims are anywhere close to accurate, but accessing the oil would be a very expensive, drawn-out process.

canyonblue17 · Thu Apr 09, 2015 5:28 pm

If I recall correctly, aren't there oil drills on the property of DEN?

gkirk · Thu Apr 09, 2015 5:38 pm

The USA have just declared war on Surrey...

seat38a · Thu Apr 09, 2015 6:12 pm

Quoting cobra27 (Reply 3):
I think it is just a fake news.

Suddenly the UK has one of the biggest oil reserves in the world

With shale oil and fracking, the have nots are suddenly the haves. The Western Hemisphere has one of the biggest unconventional oil reserves in the world. Last I read, below Paris is supposed to have billions of barrels of shale oil as well.

DarkSnowyNight · Thu Apr 09, 2015 6:13 pm

Quoting PlymSpotter (Reply 8):
Even if the recoverable quantity is at the low end of the 5-15m billion barrel upper estimate, this is incredibly significant.

Indeed. Pretty good Tupperrance even just at 15%.

flyingclrs727 · Thu Apr 09, 2015 8:23 pm

Quoting par13del (Reply 2):
Now BA and its UK premium supporters will have more push to get the airport closed as the oil is more important from a national security perspective than the airport.
So in short order, LGW will be closed for oil extraction, LHR will get a single additional runway to maintain its prestigious place in UK aviation

Why? DFW is located over the Barnett shale, and lots of oil and gas wells have been drilled there without closing even one runway. I'm surprised that the airport gets royalties. Usually land taken through eminent domain does not include mineral rights.

catiii · Thu Apr 09, 2015 8:34 pm

BA one upped DL. "I'll see you refinery, and raise you a whole oil field."

JoeCanuck · Thu Apr 09, 2015 9:01 pm

With directional drilling techniques, you could be miles away from LGW and never see a rig...and from one rig pad, you can drill dozens of holes. After drilling, you would barely have any above ground trace that anybody was ever there. Submersible pumps are replacing the old rocking horse pumpjacks.

Quoting JAAlbert (Reply 18):
You'd think this would be front page news -- I don't see any other newsite publishing this story ... Odd.

http://www.bbc.com/news/business-32229203

Oil discovery near Gatwick airport 'significant'

Quoting Revelation (Reply 9):
Now we know why EK is adding the 2nd A380 to LGW!

You owe me a new keyboard.

Quoting gkirk (Reply 25):
The USA have just declared war on Surrey..

You too.

[Edited 2015-04-09 14:04:29]

Planeflyer · Thu Apr 09, 2015 9:35 pm

Just another indication that peak oil talk leads to higher prices and new finds. Amazing what can happen when we let a market work. Hope we can learn from this. Good for the UK and the companies involved. Much better to have oil in their hands.

jetwet1 · Thu Apr 09, 2015 9:55 pm

Quoting gkirk (Reply 25):
The USA have just declared war on Surrey...

You win the internet....

aklrno · Thu Apr 09, 2015 11:17 pm

Quoting Gazdon121 (Reply 20):
would airlines get this fuel any cheaper as there be pretty much no cost to transport the oil as it is on the door step?

The Chevron El Segundo refinery is only about 1500m from LAX. Do they get a bargain? I haven't heard about that.

Don't think that the crude oil delivery cost is very high. It isn't. One Wikipedia article I found says the tanker delivery cost is about $0.02 per gallon. As a rough guess I think it may cost more than that to truck it from the fuel farm to the gate at airports that don't have underground fuel to the gate. If you have a 4000 gallon fuel truck and the charge is $100 dollars for the cost of the tanker and driver that would be $0.025 per gallon. It hardly matters where the crude comes from.

Okie · Fri Apr 10, 2015 1:35 am

Quoting FlyingSicilian (Reply 17):
OKC does, and Houston Hobby used to and IIRC DFW has some natty gas

And others as well.

Quoting flyingclrs727 (Reply 28):
Why? DFW is located over the Barnett shale, and lots of oil and gas wells have been drilled there without closing even one runway. I'm surprised that the airport gets royalties. Usually land taken through eminent domain does not include mineral rights.

DFW got a sweet heart deal from CHK for $75M and 25% royalties for a 5 year lease agreement 2007-2012.
Natural Gas prices were high at the time. I think CHK sold that particular lease/production when Carl Icahn was trying to take over CHK.

As far as LGW the best I can tell the mineral rights in the UK are owned by the Crown and not individuals.
I am not sure how much say so the local Nimby's would have if the Crown would insist on producing the oil.

Okie

planemaker · Fri Apr 10, 2015 2:23 am

Quoting JAAlbert (Reply 18):
You'd think this would be front page news -- I don't see any other newsite publishing this story ... Odd.

Speculative news at the moment plus:

1) We have excess global supply for the next two years (worse if Iran starts shipping all the oil they have in storage if sanctions are dropped).

2) Because it would still be about a decade before commercial extraction would commence.

nighthawk · Fri Apr 10, 2015 8:28 am

Quoting Gazdon121 (Reply 19):
would airlines get this fuel any cheaper as there be pretty much no cost to transport the oil as it is on the door step?

Unfortunately aircraft don't run on oil, but rather on Jet A-1. The oil needs to be taken to a refinery, processed, and finally Jet A-1 will be produced (along with many other products). It would then be transported back to the airport.

It's worth noting that not all oil is the same. Some oil can be heavy, some can be light. You need a refinery that deals with the particular kind of oil you are producing. The oil will be sold on the global market, and may well be bought up by a foreign refinery that is more suited to refining the particular type of oil you are producing.

Although a country is sometimes said to be self sufficient when it comes to oil, this doesn't mean they don't import oil - it just means they export as much as they import. They may well export all the oil they produce, and import all the oil they refine, depending on the type of oil produced.

vv701 · Fri Apr 10, 2015 10:38 am

Quoting richierich (Reply 22):
Pulling oil from the ground is a multi-step process, and even if the claims below LGW have any validity to them, one could figure years, if not decades, of burearacy and red tape from the government and local NIMBYs before a nodding-donkey is even brought near Gatwick Airport.

The sentiment behind the above is probably accurate. But only a few miles away from the reported exploration site near LGW are two nodding donkeys. They are working the same oil field as the one being discussed here. Production started in 1987. So the discovery of this field was made decades ago. What has been announced this week is a new appraisal, accurate or otherwise, of the reserves it may contain.

The two existing nodding donkeys are at Brockham near Dorking. They only produce about 100 barrels of crude per day. But they have been doing this for over a quarter of a century:

http://wikimapia.org/16869953/Brockham-Oilfield

richierich · Fri Apr 10, 2015 1:59 pm

Quoting VV701 (Reply 38):
The sentiment behind the above is probably accurate. But only a few miles away from the reported exploration site near LGW are two nodding donkeys. They are working the same oil field as the one being discussed here. Production started in 1987. So the discovery of this field was made decades ago. What has been announced this week is a new appraisal, accurate or otherwise, of the reserves it may contain.

The two existing nodding donkeys are at Brockham near Dorking. They only produce about 100 barrels of crude per day. But they have been doing this for over a quarter of a century:

I did not know that - thank you for the update! I still think it almost takes an act of God to do add anything like new oil derricks, so it is unlikely to happen anytime soon at LGW.

Planeflyer · Fri Apr 10, 2015 2:52 pm

The oil industry roughly knows where the unconventional deposits are. But test wells need to be drilled to really understand how to exploit the resource. If you are not close to the business it is hard to understand how steep the learning curve is in unconventional plays. What works in the Bakken does not work in eagle ford or the Permian. I'm sure this is what is happening here.

Aesma · Fri Apr 10, 2015 4:30 pm

Quoting Okie (Reply 34):
As far as LGW the best I can tell the mineral rights in the UK are owned by the Crown and not individuals.
I am not sure how much say so the local Nimby's would have if the Crown would insist on producing the oil.

It's the same in France. It means people living there have 0 incentive to agree to the extraction, so what you get is everyone is a NIMBY.

Planeflyer · Fri Apr 10, 2015 10:44 pm

Quoting Okie (Reply 34):
As far as LGW the best I can tell the mineral rights in the UK are owned by the Crown and not individuals.
I am not sure how much say so the local Nimby's would have if the Crown would insist on producing the oil.

Bingo. Private property rights are driving fracking in the us. Nimby is balanced by $! Most of the small gains in the U.S. economy since 2008 are all related to fracking.

JoeCanuck · Sat Apr 11, 2015 12:47 am

Quoting Planeflyer (Reply 40):

That is true...every reservoir is different but once they nail down their techniques, it's pretty much cut and paste after that.

There is lots of stuff that people just don't understand, like Fracking....getting petroleum out of the ground is a lot more technical than the old wild cat days.

Gazdon121 · Sat Apr 11, 2015 5:51 pm

Prob explain why EK have upgauged to another A380 at LGW

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