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Warning of Petrol Shortages
Topic Started: Apr 25 2008, 03:54 PM (207 Views)
ds9074
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Admiral
Quote:
 
The energy minister, Malcolm Wicks, today warned motorists they may not be able to fill up with petrol as fears mount that a strike by workers at Scotland's biggest oil refinery could spark a national fuel crisis.

Grangemouth, Britain's third-largest refinery, has begun shutting down some of its production in anticipation of a two-day walkout by 1,200 workers to protest at changes to their pensions scheme by the site's owner, Ineos.

BP's Forties pipeline, which delivers almost one-third of the UK's daily oil output, was also being shut down because of the looming strike.

With panic-buying threatening to break out at the pumps, Wicks appealed for motorists to remain calm. "[Drivers] might have to be patient," he said. "People will have to be sensible and rational. I cannot guarantee that every garage forecourt will have petrol at that precise moment."

He urged both sides in the dispute to resume talks over the closure of Ineos's final salary pension scheme to new workers.

A spokesman for the Unite union, which represents the workers, said Grangemouth was unlikely to return to full capacity for up to three weeks. The refinery, near Edinburgh, normally processes 210,000 barrels of crude oil a day and supplies 10% of UK's fuel.

This afternoon, thousands of "angry and defiant" workers gathered at Grangemouth as they prepared to begin the walkout on Sunday morning. Around 1,000 workers streamed into the refinery for a closed meeting with Unite officials.

Tony Woodley, the union's joint leader, said afterwards that the workers were still intent on carrying out their threat, but called on Ineos to "get back round the negotiating table".

He said: "I have just had the opportunity to talk to our members, who are extremely angry and extremely determined to make sure that this company does not weaken or remove the pension scheme that will affect their sons and daughters who may very well follow them into this company here.

"My message to Ineos is this: we've got a dispute now that nobody wants. It's quite right and proper that the company should look at this as a pause for peace now. Let's get back round the negotiating table, let's look at what we can do to resolve a very, very difficult problem."

Woodley said there was "absolutely no possibility" of the strike being called off.

Tom Crotty, the Ineos chief executive, said before the workers' meeting: "Ineos has addressed the issues for existing staff, so now the union say the dispute is about future staff. Unite are asking their members to strike in support of non-existent colleagues."

The company said that despite "repeated requests", Unite had refused to maintain power and steam supplies needed to keep the nearby Kinneil crude processing plant in production.

"This is likely to lead to a shutdown of a substantial proportion of North Sea oil production. Unite's action will impact on the whole of the UK," it said.

"We are deeply disappointed that today the Unite union has chosen to escalate this dispute further. We call on Unite to change their plans that target other businesses and indeed the wider Scottish and UK economy. Their dispute is with Ineos, and it should stay with Ineos," Crotty said.

The Scottish first minister, Alex Salmond, said there were enough supplies of petrol and diesel to last well into May.

But there was concern that petrol stations may take advantage of the panic created by the possible shortage by profiteering.

Motoring organisations warned drivers to make sure they did not get ripped off, after reports that prices at some pumps had jumped by up to 5p a litre in the last 48 hours. They advised motorists not to panic-buy as this would only aggravate any fuel shortages.

Despite the pleas, supplies at many Edinburgh petrol stations were running low this morning, and one had run dry. Several filling stations had just two or three pumps open, with queues two or three cars deep. One driver was seen filling up two jerry cans and a tank before paying.

Downing Street urged Ineos and Unite to return to the negotiating table. "We believe that this is a dispute that should be resolved," a No 10 spokeswoman said. "We are encouraging both sides to get round the table and bring about a resolution based on common sense."

The shadow business secretary, Alan Duncan, said: "The government has been very slow to cotton onto the harmful effects of this strike. The government must stretch every sinew to get all parties back round the negotiating table as a matter of urgency."

The Liberal Democrat business spokeswoman, Sarah Teather, said: "Malcolm Wicks' comments that the government could not guarantee petrol supply were very ill-conceived. Ministers must be very careful not to end up talking the country into an avoidable fuel crisis."

The offshore oil industry body, Oil and Gas UK, warned yesterday that closing the Forties pipeline could cost an estimated £50m a day in lost production, with the Treasury taking half that hit.

Record oil prices have pushed petrol up to all-time highs: UK fuel prices currently average 109.24p a litre for petrol and 119.26p for diesel.

It now costs £7.84 more to fill a typical 50-litre petrol tank than at the same time last year. A typical family with two cars is spending £33.61 more per month on petrol.

http://www.guardian.co.uk/politics/2008/ap...tradeunions.oil

Obviously the loss of 10% of the UK refining capacity has the potential for a big impact on UK supplies and prices.

I wonder however whether the loss of a significant portion of the UKs North Sea oil output has more global ramifications. Oil prices are already sky high, this could send them higher. Remember the UK is quite a large oil producer, about the same as Kuwait or Iraq in output.
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somerled
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Admiral MacDonald RN
Been there done that in the late 1970s , you guys in ol' blimey will adapt.

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ds9074
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Admiral
Petrol prices of £5 a gallon are forecast.

Thankfully I dont own a car and have a free bus pass which I make good use of, so that will insultate me from the immediate effects of price rises and shortages.
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Dandandat
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Time to put something here
ds9074
Apr 25 2008, 04:54 PM
Obviously the loss of 10% of the UK refining capacity has the potential for a big impact on UK supplies and prices.

and increases of profit for the oil companies. :chin: I wouldn't expect the negotiations to go smoothly.
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