The Development of North Sea Oil and Gas edited by Gillian Staerck ICBH Witness Seminar Programme The Development of North Sea Oil and Gas ICBH Witness Seminar Programme Programme Director: Dr Michael D. Kandiah © Institute of Contemporary British History, 2002 All rights reserved. This material is made available for use for personal research and study. We give per- mission for the entire files to be downloaded to your computer for such personal use only. For reproduction or further distribution of all or part of the file (except as constitutes fair dealing), permission must be sought from ICBH. Published by Institute of Contemporary British History Institute of Historical Research School of Advanced Study University of London Malet St London WC1E 7HU ISBN: 1 871348 71 4 The Development of North Sea Oil and Gas Held 11 December 1999 at the Science Museum, Exhibition Road, London Chaired by Alex Kemp Seminar edited by Gillian Staerck ICBH gratefully acknowledges the support given to this event by BP Shell The Department of Trade and Industry Institute of Contemporary British History Contents Contributors 9 Citation Guidance 15 Introduction 17 Alex Kemp North Sea Oil and Gas Session I: 18 Corporate Interest in the Development of the North Sea Fields edited by Gillian Staerck North Sea Oil and Gas Session II: Developing the Technology 47 edited by Gillian Staerck North Sea Oil and Gas Session III: The Government’s Perspective 73 edited by Gillian Staerck Contributors Editor: GILLIAN STAERCK Institute of Contemporary British History Chair: PROFESSOR ALEX KEMP University of Aberdeen. The official historian of North Sea oil and gas. Session I Witnesses: JAMES ALLCOCK OBE was involved in the establishment of UK gas policy within the Department of Energy. He was then responsible for many years for the wholesale purchases of natural gas for the UK from UK sources, Norway and Algeria. GEORGE BAND joined the Shell Group in 1957 as a petroleum engineer, working in seven different countries and then, from 1976 to 1980, as Director of Shell UK Exploration and Production when their major North Sea oil discoveries came on production. DR PETER BROUGHTON has spent almost 30 years in the offshore oil industry, working for Lloyds Register of Shipping, Burmah Oil Trading, the British National Oil Corporation and lastly, for over 20 years, with Phil- lips Petroleum Company. BASIL BUTLER was involved extensively in the North Sea, being responsible for CBE, FREng. the construction of the Ninian pipeline and the Sullom Voe ter- minal. He was later in charge of all BP's North Sea operations and then of BP's worldwide exploration and production activities. PROFESSOR KEITH University of Aberdeen. Author of one of the earliest academic CHAPMAN studies of North Sea oil and gas (1976). Co-author of Depart- ment of Environment/Scottish Development Department sponsored study to develop appraisal methodologies for assess- ing impacts of major industrial projects (HMSO, 1978). The initial impetus to this research was provided by actual and antic- ipated oil-related projects in Scotland. PROFESSOR University of Tubingen. Formerly with the Department of Ener- CHRISTOPHER HARVIE gy, where he was closely involved with the creation and winding- up of BNOC. He was Director General for Energy at the Department of Trade and Industry until 1996. IAN HENDERSON worked for Shell International for 31 years. He was involved in 10 The Development of North Sea Oil and Gas the North Sea during each of his three postings to Shell UK Expro – as Senior Oil and Gas Engineer in London from 1972- 75, where he was responsible for the topsides design of Shell/ Esso's North Sea production platforms. He was involved also in the early work for the Sullom Voe terminal, as Chief Engineer in Aberdeen from 1975-77 and as Director of Operations in Aber- deen from 1983-90. PETER KASSLER studied geology at Imperial College. From 1960 to 1995 he worked for Shell, completing his career as Middle East Co-ordi- nator and the Group Planning Co-ordinator. Since retirement, he has worked as a consultant on energy and environmental strategies, partly in association with Chatham House. PROFESSOR became Professor of Sub-sea Engineering at Strathclyde Univer- COLIN MACFARLANE sity in 1986 after working in the shipbuilding, shipping and oil industries. His first involvement offshore was in the mid-1970s with P & O Energy and later with BP. He has broad academic interests and is actively involved with OILC, the trade union. PROFESSOR PETER Professor Emeritus of Erasmus University, Rotterdam, has been ODELL particularly concerned with European energy issues since the 1960s when the continent's indigenous coal industry entered its terminal decline phase. As early as 1971 he argued that the North Sea would become an oil and gas province of major dimensions in terms of reserves and of international importance in respect of its impact on supply and price. PROFESSOR MICHAEL served as Director of Economics to the Ministry of Power in POSNER 1966-7 and then as Deputy Chief Economic Adviser to the Treasury until 1971 and again between 1974-76. He continued his association with the Department of Energy through the 1970s, and served as Chairman of the Social Science Reseach Council between 1979-84. PROFESSOR COLIN Professor of Economics, University of Surrey and Editorial Dir- ROBINSON ector, Institute of Economic Affairs. From 1960 to 1968 he worked for Esso Petroleum and Esso Europe, latterly as Esso Europe's Economic Adviser on North Sea gas, and was a member of Esso's negotiating team with the Gas Council. GEORGE WILLIAMS CBE served as Managing Director of Shell Exploration and Produc- DSc, MA, FGS, FinstPet tion, 1964-73, and as the Director General of the UK Offshore Oil Association, 1976-84. Session II Witnesses DR PETER BROUGHTON has spent almost 30 years in the offshore oil industry, working for Lloyds Register of Shipping, Burmah Oil Trading, the British National Oil Corporation and lastly, for over 20 years, with Phil- lips Petroleum Company. © Institute of Contemporary British History, 2002. Not to be reproduced without permission. The Development of North Sea Oil and Gas 11 BASIL BUTLER was involved extensively in the North Sea, being responsible for CBE, FREng. the construction of the Ninian pipeline and the Sullom Voe ter- minal. He was later in charge of all BP's North Sea operations and then of BP's worldwide exploration and production activities. J. B. COOK joined Shell in 1955 and worked in exploration and production in various countries until 1976 when he joined Shell UK Explo- ration and Production. He was Engineering Manager of Shell Expro from 1981-88. DR ANTHONY DENTON was co-founder of marine and engineering consultants Noble Denton International Ltd and active in the offshore industry since 1960. He developed procedures for the ocean tow of drill- ing rigs to enable them to enter the North Sea and to operate in that environment. Later, he provided the same service for the transportation and emplacement of the production platforms which were installed in the oil fields. ROGER DOBSON is Director General of the Institute of Civil Engineers. PROFESSOR JOHN University of Paisley. FOSTER IAN HENDERSON worked for Shell International for 31 years. He was involved in the North Sea during each of his three postings to Shell UK Expro – as Senior Oil and Gas Engineer in London from 1972- 75, where he was responsible for the topsides design of Shell/ Esso's North Sea production platforms. He was involved also in the early work for the Sullom Voe terminal, as Chief Engineer in Aberdeen from 1975-77 and as Director of Operations in Aber- deen from 1983-90. PROFESSOR became Professor of Sub-sea Engineering at Strathclyde Univer- COLIN MACFARLANE sity in 1986 after working in the shipbuilding, shipping and oil industries. His first involvement offshore was in the mid-1970s with P & O Energy and later with BP. He has broad academic interests and is actively involved with OILC, the trade union. DR GAVIN MCCRONE The Scottish Office. PROFESSOR PETER Professor Emeritus of Erasmus University, Rotterdam, has been ODELL particularly concerned with European energy issues since the 1960s when the continent's indigenous coal industry entered its terminal decline phase. As early as 1971 he argued that the North Sea would become an oil and gas province of major dimensions in terms of reserves and of international importance in respect of its impact on supply and price. MICHAEL POSNER served as Director of Economics to the Ministry of Power in 1966-7 and then as Deputy Chief Economic Adviser to the Treasury until 1971 and again between 1974-76. He continued his association with the Department of Energy through the © Institute of Contemporary British History, 2002. Not to be reproduced without permission. 12 The Development of North Sea Oil and Gas 1970s, and served as Chairman of the Social Science Reseach Council between 1979-84. PROFESSOR ADRIAN A founder member of the post-graduate Department of Petro- TODD leum Engineering at Heriot-Watt University. Session 3 Witnesses JAMES ALLCOCK OBE was involved in the establishment of UK gas policy within the Department of Energy. He was then responsible for many years for the wholesale purchases of natural gas for the UK from UK sources, Norway and Algeria. BASIL BUTLER was involved extensively in the North Sea, being responsible for CBE, FREng. the construction of the Ninian pipeline and the Sullom Voe ter- minal. He was later in charge of all BP's North Sea operations and then of BP's worldwide exploration and production activities. SIR JOHN GUINNESS The Department of Energy from 1980 to 1992. CHARLES HENDERSON At the Department of Energy from its beginning, closely involved with Oil Policy and the creation and developoment of BNOC in the 1970s.