Forties Crude Oil in UK: It’s Price, Production, and Operators
The crude oil market can be pretty confusing at first glance. This is because many different types of crude oils are produced differently and used for different purposes.
Each crude oil variety has its unique properties and uses. For example, one of the lesser-known crudes produced and traded globally is Forties Crude Oil from the UK.
This article will explain what Forties Crude Oil UK is, where this type of crude oil comes from, how it’s transported, its production process, and its usage in various industries.
What is Forties Crude Oil?
Forties crude oil is an oil that is extracted from the North Sea oil fields. Forties crude oil is a type of crude oil produced mainly in the North Sea and the UK Continental Shelf. It is also known as North Sea crude oil, UK crude oil, or UK heavy crude oil.
Forties crude is also called North Sea Light (NSL) crude because it has a lighter gravity than heavy crudes such as Brent.
The Forties region is located around the northern part of the UK Continental Shelf. This region has three main production platforms: Statoil’s Lysekil, Statoil’s Troll A, and Chevron’s St Fergus.
These platforms produce 11 million barrels of oil annually, equating to approximately one-third of all production in the UK Continental Shelf. The average API gravity for this area is around 45 degrees.
Forties crude has been produced since 1930 when small drilling rigs first started exploring for oil in the region. However, forties crude had its fastest growth between 1972 and 1978 when it produced about 3 million barrels of oil per year.
This increase was mainly due to new extraction techniques that enabled producers to extract more from their wells. By the early 1980s, Forties had become a significant contributor to the domestic oil supply and produced about 12 million barrels per year by 1985.
Forties crude oil is essential, as it is the source of approximately 40% of the crude oil used to produce Brent. Forties crude oil UK is named after the Forties pipeline, which is the primary means of transportation.
This particular crude oil is different from Brent Crude Oil in that it has a higher sulfur content. While both are extracted from the North Sea, Forties Crude Oil UK is produced from the southern portion of that area. Brent crude oil comes from the central northern part of the North Sea.
Where is Forties Crude Oil produced?
Forties crude oil is extracted from the North Sea, an area of the Atlantic Ocean that spans several countries in Northern Europe. Crude oil is a naturally occurring hydrocarbon liquid in large quantities in certain rocks.
It is frequently found alongside natural gas and is a source of many refined fuels, including gasoline, diesel, and jet fuel. Additionally, crude oil is used to produce various other products, including plastics.
Approximately 400 fields in the North Sea have crude oil, most of which are located in Scotland. The majority of fields in Scotland produce crude oil, with the exception of those that make natural gas.
What is the Price of Forties Crude Oil?
Forties crude oil is part of the Brent basket that make up the Dated Brent crude oil benchmark price, arguably the most important price for the oil markets. Therefore, the Forties blend is an essential part of global commodity trading markets.
BFOE or BFOET includes the price of Brent, Forties, Oseberg, Ecofisk, and Troll. Its also used in forward market assessments across the US, the Middle East, and Asia.
Loading times at Rotterdam and quality premiums across some of the BFOET also impact the cost of Brent.
How is Forties Crude Oil refined?
Forties crude oil is transported to the Grangemouth refinery, located south of Glasgow in Scotland. Grangemouth refinery is operated by the INEOS company, which also owns the Forties pipeline.
The crude oil is then refined using steam-assisted gravity drainage (SAGD) technology, a relatively new refining process. This process involves the injection of pressurized steam into the crude oil reservoir, thus allowing the crude oil to be lifted to the surface.
Who Produces and Transports Forties Crude Oil?
Forties Crude oil UK is produced by several oil and gas companies, who extract gas through drilling and then convert it into crude oil. Once this has been done, it is transported to refineries, where further processing takes place. Forties Crude oil UK produced 1% of global oil production in 2017. It was calculated that there was an average daily production of 1.3 million barrels per day in 2017.
The Forties Crude Oil field is operated by the DEA company, which is a joint venture between the BP company, which owns 46% of the operation, and the INEOS company, which owns the remaining 54%. The crude oil is transported through a pipeline system known as the Forties Pipeline.
The Forties Pipeline extends from the Grangemouth refinery to a terminal in Forties, Scotland. From there, the remaining crude oil, as well as some of the Brent crude oil, is transported to the Sullom Voe Terminal via a separate pipeline.
The Forties Crude Oil is a lesser-known crude produced from the southern portion of the North Sea. It is named after the Forties pipeline, which is the primary means of transportation.
Forties crude oil is different from Brent Crude Oil in that it has a higher sulfur content. The price of Forties crude oil is generally higher than Brent crude oil.
The crude oil is then refined using SAGD technology, a relatively new refining process. Finally, the crude oil is transported through the Forties Pipeline, with some transported via a separate pipeline to a terminal in Sullom Voe for international trading markets.