Conocophillips is planning to close its North Sea gas operations which will damage UK's gas production.ConocoPhillips has indicated that it plans to shut down the Lincolnshire gas operations and the Theddlethorpe gas terminal but now immediately. This action is coming due to the energy company products prices being damagingly low and can be considered as an attempt to save extra expenditures. If it implements on these plans, this move can damage the gas production of the United Kingdom by 10%.
Many oil companies are taking actions to protect their business while they suffer from the low oil price, which has also led to ConocoPhillips pulling the plug on such a major pipeline. For now, it only reviews its options but if it shuts the pipeline down, the future of Lincolnshire and Theddlethorpe is doubtful. These areas are mature enough with rich fields of oil and gas, but now this is coming to a sad end since the oil organizations have sucked almost everything out of these fields since the operations have been going on since 1970s.
Lincolnshire is in the list of top 15 major gas networks in the United Kingdom, meaning that if the gas company shut its operations down in the North Sea, this would end up damaging 10 of the oil fields including Anglia and Audrey of this area, which depend on the pipeline. The oil company is cooperating with Oil and Gas Authority, and analyzing other gas shippers and shareholders for the pipeline.
This move comes as the oil and Gas Company thrives to succeed in the oil industry due to low prices of its produce. Its plans of shutting down the terminal and the pipeline is not only going to damage the UK market and the field of the area but even the locals as they will end up losing their jobs if this does happen including Mapplethorpe, which is where 150 of the organizations employees are from.
The energy giant has announced that its plans are not going to be immediate, however many gas fields that were being operated under it in Theddlethorpe have stopped their productions. A spokeswoman for OGA did disclose that it recognizes the significance of the terminal and is working hard with shareholders for as much recovery as possible.
ConocoPhillips stock closed at $39.78 on April 1, Friday. The price of oil has already fallen to $115 per barrel back in 2014 and now $39 per barrel this week forcing companies from the oil industry to save any extra costs. UK has lost 65,000 job from this markets fall and 43% of its oil fields will still be working at a loss if these conditions remain and the price of crude oil remain at $30 for this year too.
Many oil companies are taking actions to protect their business while they suffer from the low oil price, which has also led to ConocoPhillips pulling the plug on such a major pipeline. For now, it only reviews its options but if it shuts the pipeline down, the future of Lincolnshire and Theddlethorpe is doubtful. These areas are mature enough with rich fields of oil and gas, but now this is coming to a sad end since the oil organizations have sucked almost everything out of these fields since the operations have been going on since 1970s.
Lincolnshire is in the list of top 15 major gas networks in the United Kingdom, meaning that if the gas company shut its operations down in the North Sea, this would end up damaging 10 of the oil fields including Anglia and Audrey of this area, which depend on the pipeline. The oil company is cooperating with Oil and Gas Authority, and analyzing other gas shippers and shareholders for the pipeline.
This move comes as the oil and Gas Company thrives to succeed in the oil industry due to low prices of its produce. Its plans of shutting down the terminal and the pipeline is not only going to damage the UK market and the field of the area but even the locals as they will end up losing their jobs if this does happen including Mapplethorpe, which is where 150 of the organizations employees are from.
The energy giant has announced that its plans are not going to be immediate, however many gas fields that were being operated under it in Theddlethorpe have stopped their productions. A spokeswoman for OGA did disclose that it recognizes the significance of the terminal and is working hard with shareholders for as much recovery as possible.
ConocoPhillips stock closed at $39.78 on April 1, Friday. The price of oil has already fallen to $115 per barrel back in 2014 and now $39 per barrel this week forcing companies from the oil industry to save any extra costs. UK has lost 65,000 job from this markets fall and 43% of its oil fields will still be working at a loss if these conditions remain and the price of crude oil remain at $30 for this year too.