Energy / ‘Business as usual’ at SVT as Middle East conflict results in oil price hike
IT IS “business as usual” at Sullom Voe Terminal (SVT) at the moment amid rising oil prices due to the conflict in the Middle East.
The topic was brought up at a meeting of Shetland Islands Council’s harbour board on Wednesday.
Shetland South member Robbie McGregor questioned if, given the current situation in the Middle East, there is sufficient capacity to cope with an “upturn in business” given it was speculated that the price of a barrel of Brent crude could rise to $100.
Shetland Islands Council infrastructure director John Smith said the local authority tracks international developments and how they might affect business as far as it can.
But he said it is business as usual at Sullom Voe Terminal, which is operated by EnQuest, and added that there is capacity at SVT and the SIC’s Port of Sullom Voe to scale up if needs be.
Smith said however that the price of oil could influence the wider sector on a more medium to longer term basis.
He noted how the chancellor Rachel Reeves said she is going to speak to North Sea oil and gas leaders soon.
Smith said that “one would think that the UK’s energy security needs was brought into focus again” by the uncertain international arrangements.
Harbour board chairman Robert Thomson meanwhile said if the UK Government takes energy security more seriously, Shetland could be a beneficiary.
Israel and the US carried out strikes on Iran at the end of February, with Supreme Leader Ayatollah Ali Khamenei among those killed. This has led to retaliations from Iran.
The busy Strait of Hormuz shipping lane, which is a key route for oil traffic, is currently closed.
The comments on oil echo those made by Loganair chief commercial officer Ronnie Matheson at a meeting of the Shetland external transport forum on Tuesday.
He was asked by McGregor if the instability in the Middle East may affect oil costs for the airline.
Matheson said that although they had “seen some oil change in oil price already”, it was “too early to call” what exactly the impact would be.
Become a member of Shetland News
Shetland News is asking its readers to consider paying for membership to get additional perks:
- Removal of third-party ads;
- Bookmark posts to read later;
- Exclusive curated weekly newsletter;
- Hide membership messages;
- Comments open for discussion.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a member of Shetland News by either making a single payment, or setting up a monthly, quarterly or yearly subscription.
Already a member? Sign in to hide this message.
