World response needed to oil crisis: British PM
LONDON (AFP) — Britain on Wednesday gave the go-ahead for two new North Sea oil fields, as Prime Minister Gordon Brown warned the world faced a “great oil shock” fuelled in part by increased demand and tight supplies.
Business Secretary John Hutton said the fields some 150 kilometres (93 miles) northeast of the Shetland Islands, off northern Scotland, would peak at up to 50,000 barrels per day, with a total output of 50 million barrels.
He also outlined government plans for new oil and gas fields to be carved out of unprofitable parts of about 30 existing fields off Britain’s coast, which could see 20,000 barrels a day added to daily production.
The announcement came as Brown and his finance minister Alistair Darling met heads of the Oil and Gas UK industry body in northeast Scotland to push for greater output from Britain’s North Sea fields.
Afterwards, Brown said: “I met the oil producers today because we are facing the third great oil shock in decades.”