A Look At the North Sea

"THE MISSION TO Offshore Scotland was in my opinion a very worthwhile venture, as it indicated the scope of the offshore oil and gas business and how we might exploit it to the fullest here in Nova Scotia - if our offshore fields eventually become producing fields. The writer was able to attend a considerable number of lectures and as a result gained some valuable know-how on the engineering design, financing and operation of the North Sea oil industry. There are many new fields of technology that had to be developed to overcome the North Sea's hostile environment and a great deal of the same technology will have to be developed to win oil and gas from our continental shelf. The visit left me with several impressions, which in the main are:(1) The high order of investment required to develop offshore oil. The investment ranges from 10 to 20 times that required for a similar output on land. Each barrel of oil costs on the average of about $2,- 500 per barrel per day.(2) Because of the high investments required, before the first oil is produced the field must be brought into production at the earliest possible date and initial lead time from decision to production is less than four years. In the British Petroleum field, working at a depth of 450 feet will require an investment of $900,000,000 to develop a production of 400,000 bbl per day. (3) The size and complexity of equipment required is beyond anything ever imagined. Problems which must be overcome are such factors as water depth, wind velocities, wave height, wave period, long periods of darkness, low temperatures, distance from land, and fog."