A north-east engineer made redundant from his job in the oil and gas industry today dismissed the Scottish's Government's scheme to support retraining as a "publicity stunt".
With Brent crude prices falling below $50, widespread trader views of continuing oversupply and massive cut-backs in the oil and gas industry, Shell has begun drilling in one of the world’s highest cost locations, endeavouring to tap the huge reserves of the offshore Arctic!
So what’s going on?
We all know, but often choose to forget, that the oil industry is an extremely cyclical business, the continuing victim of regional wars, global geopolitics and macroeconomics.
After nearly 20 years of subdued prices, oil convincing broke through $50 in the second quarter of 2005, surging to exceed $140 in summer 2008 before collapsing again to $40 during the global financial crisis.
