OIL BOOM IN SPRINGBURN Sitting on our wee rock in the middle of the salty water, North Sea to the east, Atlantic Ocean to the west, we have become used to the oil industry. Its been part of our lives since the 70s. Which is why it is important that we share what is happening here with the rest of Scotland since some of your reaction to our oil and gas posts have surprised us. Huge numbers of you are commenting, liking and sharing these posts because to most the facts and figures are all new, you are not getting the true picture from the BBC and papers. Some of you have implied that the oil boom is coming to an end, its running out, we will lose revenue stream in years to come. Nothing could be further from the truth and in the coming six weeks we will ensure you are fully clued up on what is going on. We could not cover the subject in one post and we want to avoid you all falling asleep so lets consider one wee chunk. Transport and accommodation. Excited yet? Those in the industry know that oil companies do not care where in the world they work or invest, as long as there is profit at the end of it thats ok, which means they invest hugely in logistics. Aircraft fly into and out of Shetland seven days a week, 363 days per year. We have two airports (for 23,000 people?), one is a dedicated oil-related base for private charters of fixed-wing bringing personnel and freight to Shetland and transferring by chopper to the oil fields, the other is for scheduled and oil flights. Scatsta, the private one, has expanded until it can expand no more, there is simply no more space for aircraft, such is the demand for logistics in the boom of 2014. Although its been running constantly since the late 70s. It sits within a mile of Europes largest oil-handling port at Sullom Voe which cost a cool £1billion. In 1978 money! With a 30 year lifespan it should be a derelict industrial wasteland. Except it has now been given a further 35 year boost with a total of £800 million refurb. This is not due to the North Sea alone, more the massive oil and gas reserves being developed as we speak, some of which were known about in 1977, some of which are being kept quiet till after the referendum(well keep you posted.) You already know of BPs Clair field and its 7 billion barrels. There are many, many more in the pipeline (See what you did there - Ed). Literally on the other side of the fence Total are building a gas plant, another £800 million - although it looks like a billion since it appears to be getting larger even before completion. Sumburgh Airport in the 70s was handling the same frequency of aircraft movements as Heathrow, largely due to helicopter movements out to the North Sea and is undergoing rapid expansion. Hangars are being rebuilt, terminal buildings improved and runways lengthened. Flights are full, hotels and guest houses are full, property is impossible to buy, there are flotels and liners moored in Scalloway and Lerwick full to capacity with workers. The harbour is crowded with oil related shipping. There are not enough people to fill all the jobs. Weve seen all this before and were seeing it again. Only the amounts of oil and gas, the size of investment, the pressure on local infrastructure is far higher than our first boom. And theres more on the way. It is true that revenues from oil are down this year but the oil industry is cyclical and investment has never been higher. In five years time that revenue will be colossal. Come and see for yourself, but take a tent because you may not get a room and book your flight well in advance. Now they know in Springburn so tell your family and friends.
Posted on: Tue, 05 Aug 2014 21:26:36 +0000
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