Show BUSINESS ECONOMIC IMPACT OF 01 NORTH S SEA A OIL It has been nearly 20 years since imaginative oil seekers guessed that the North Sea between Britain and the North Countries might contain reserves of oil and natural gas At the time there were many doubters but today estimates of oil reserves run to 26 billion barrels ranking the area well up with known oil regions Natural gas is also present in quantity and was the initial discovery onshore in the Netherlands and then offshore in the lower North Sea British sector Piped ashore natural gas has to a degree changed the economies of oC the Lowlands and andis is largely responsible for eliminating the notorious coal coal- induced fire fogs of London OIL BOUNTY To maintain an orderly international international in in- discovery program the North Sea was divided in 1958 into sectors to be controlled and leased by the surrounding nations Principals were the United Kingdom Norway Denmark the Netherlands and Germany It was not until 1969 that any recognizable commercial commercial com com- mercial oil find was made and this has come on stream only in the past few years One early discovery was made in the Norwegian sector named the Field This is a typical North Sea operation and now consists of a complex of oC pia platforms oil gathering ng lines gas separation units and undersea pipelines Originally crude oil was lifted by tanker a fairly low low- volume operation owing to weather limitations In 1975 a mile mile pipeline was completed from to England a considerable considerable considerable con con- engineering feat Ceal Transport from Crom the field reached an average of barrels a day by last October and should continue to increase Natural gas is also produced at al This resource is too valuable to flare and consequently consequently con con- a mile undersea undersea gas pipeline will go into operation this year coming ashore at Emden Germany Working northward other offshore oil and gas fields with potential include the Forties Field with production pipelined ashore near Aberdeen Scotland and thence to the Glasgow area Piper Field lands output ashore at an Orkney Islands terminal Even further north are Field with gas production and Brent and Dunlin terminating in the bucolic Shetland Islands Mounting o oil l production in the North Sea will mean a great deal to the British economy now on one of the weakest and most troubled in the Western World At present rates of oC production growth it is likely that Britain can attain energy sufficiency self-sufficiency in two or three years As recently as February North Sea oil production was at ata a daily rate to cover third one-third of the country's annual demands for oil supplemented of course by Britain's share of North Sea natural gas and the huge onshore onshore onshore on on- shore reserves of coal FUTURE I POTENTIALS While Britain may be able to absorb its new-found new wealth of oC oil with responsible management other terminal locations may face problems The Shetland Islands are an example of the potential for harm These farthest north of the British Isles have an economy consisting principally of fishing farming and knitted goods This could be devastated by Big Dig Oil if proper planning were not implemented Fortunately Fortunately For For- the islanders have done cone considerable planning and so far have restricted oil operations to coordinated areas I t the he effect on Scotland is some somewhat hat different Greatly in need of economic stimulus the Scots have approved widespread construction of terminals refineries and offshore offshore offshore off off- shore platforms While con ion considerable considerable employment has already been generated as a result the influx of outside workers has resulted I in some ome friction with the natives native Thus North Sea oil is a mixed blessing and it will wilt take careful management for the peripheral beneficiaries to derive the maximum benefits of oil and gas from the wild sea |