Oil price volatile — two scenarios foreseen

Having fallen earlier this week, oil prices have risen again, to around £112/barrel. The reason — US commercial crude stocks fell by 7.3million barrels, ten times the forecast amount. Inventories are now at their lowest levels since January. Prices rose after Libyan output dropped earlier this year. Full production (1.6m barrels/day) is currently forecast to …

Shale gas found in Lancashire

Mark Miller, chief executive of Cuadrilla, says that enough shale gas has been found beneath Blackpool and Preston to supply all Britain’s gas need for “more than 56 years”. He declined to say how much of that would be recoverable. In the US, ten percent has proved to be a typical recovery rate, meaning that …