Update - BP Begins Shutting Down Forties Pipeline - Reuters 4/25 18:05 BST

[hatrack]

LONDON (Reuters) - BP began on Friday shutting its North Sea Forties pipeline system, which supplies up to half the UK's oil, ahead of a strike planned this weekend at the Grangemouth refinery in Scotland.

Grangemouth supplies power to a nearby plant which processes crude oil from the Forties pipeline. The power plant at Grangemouth is due to shut on Saturday ahead of the strike by 1,200 refinery workers which starts on Sunday.

The strike has caused fears of fuel shortages in Scotland and northern England and triggered sharp rises in European diesel, gasoline and UK gas prices this week.

The shutdown of the Forties system takes about 24 hours and must be completed before the power station closes.

"We have started the process which will lead to shutdown," a BP spokesman said on Friday morning. "We expect that there will cease to be any throughput through the system after Saturday night."

EDIT

http://uk.reuters.com/article/businessNews/idUKL2586888820080425

[Parche]

1. How Convenient

A strike ............:sarcasm: :sarcasm: :hi:

[lapfog_1]

2. So... let's see

Nigeria is facing a complete shutdown.

North Sea is looking at 50% reduction.

Saudi Arabia spends $1.5B in new drilling programs which was going to boost production to 12M barrels a day (from 9.5) but now is only pumping 9M a day (and the official explanation is that they need to leave oil in the ground for their grandchildren).

Mexico's Cantarell is declining 14 percent per year starting in 2006, with possibly sharper declines this year.

Venezuela wants to sell oil to anyone by the US.

China is trying to figure out how to continue 10% year over year economic growth.

Food (grains) prices are skyrocketing on expectations of future price increases due to much higher oil costs. Food riots ensue.


Yup. Peak oil is here. And we're boned.

[Zachstar]

3. The question is how badly are we in trouble.

Is this high oil going into reserves that can be opened?

If so how long will the reserves last if they are fully opened?


I say we have GOT to have another 5 years to do SOMETHING to reduce the strain. I think that is perfect grounds for opening up the reserve before our economy collapses due to high fuel costs.

[phantom power]

4. Where are these 5-year reserves, of which you speak?

I'm not aware of any.

[lapfog_1]

6. This is the only reserve that I'm aware of...

from the wiki

The Strategic Petroleum Reserve (SPR) is an emergency petroleum store maintained by the United States Department of Energy. The US SPR is the largest emergency supply in the world with the current capacity to hold up to 727 million barrels (116 million m³) of crude oil. The second largest emergency supply of petroleum is Japan's with a 2003 reported capacity of 579 million barrels (92,100,000 m³).

The current inventory is displayed on the SPR's website. As of April 15, 2008, the current inventory was 701.3 million barrels (111,500,000 m³). At current market prices ($115 a barrel) the SPR holds over $80 billion worth of petroleum.

The United States started the petroleum reserve in 1975 after oil supplies were cut off during the 1973-74 oil embargo, to mitigate future temporary supply disruptions. According to the World Factbook<1>, the United States imports a net 12 million barrels (1,900,000 m³) of oil a day (MMbd), so the SPR holds about a 58-day supply. However, the maximum total withdrawal capability from the SPR is only 4.4 MMbd.

http://en.wikipedia.org/wiki/Strategic_Petroleum_Reserve

So, that's a 58 day supply right now.

Of course, if we were in a WWII style war someplace, that reserve would be used for the military and essential domestic commercial enterprise directly related to the war effort. Even then, I doubt it could be stretched into anything like 5 years... or even 1 year.

[NickB79]

5. 5-year reserves?

The US uses 21 million barrels per day, 7.5 billion barrels per year. The Strategic Petroleum Reserve holds slightly over 700 million barrels right now, with a maximum capacity of 727 million barrels.

http://www.spr.doe.gov/dir/dir.html

We don't have a 5-year supply: we have a 1-month supply!

[Zachstar]

7. Well... damn

All I got to say. Because we are ****** if oil goes any higher. No trucks able to run = collapsed economy

[GliderGuider]

8. Yeah, that's kinda what I'm thinking.

We're out of time. This year is the global tipping point on a number of fronts -- energy, economy and food. All those pigeons coming home to roost at the same time.

[Zachstar]

10. Well I guess you don't mind then if I go around saying FUSION FUSION!!

I mean what is there to lose at this point? NASA was warning us of peak oil in the EARLY 70's The oil crisis ought to have been a warning sign as well yet people still drive monster SUVs and Raygun-Bush did not do a damn thing to slow it.

Time for fusion!

[phantom power]

9. The coming decades are looking pretty grim.

This is the sort of thing that the peak-oil theorists have been running around warning everybody about. Now it's really happening.