| Description | Tape 1 Side A Present work: Writes comment and research on oil industry matters for David Williamson Associates. Has been working in this field since 1967. Has a younger sister, Ann. Knew grandmothers. Does not know grandfather's occupations. Father worked in Statistical Department of Shellmex & BP. Describes childhood home in Tottenham. Went to school at Downhills Junior Mixed, Tottenham County Grammar School. Recalls no influence of father. Had no intention of following his line of business. Feelings about parents. Spartan existence in and after war. Reference pocket money. In first 12 years of working was not well paid. Has never wanted to borrow money, take out loans attitude of parents. Social life was sport not good at it. Outstanding at table soccer. Was an achiever at junior level school, possible record 11-plus results for North London. Reference Barbara Windsor. Was always in top 3 in grammar school. Always beaten by 2 girls.Has always been of an investigative mind one reason for doing science at university. Details. Got 1st in pure and applied mathematics. Mentions passion for music. Did temporary work in holidays as book keeper in stock broking firm, joined them after leaving university. Explains decision to become a stock broker.Has always had interest in music. Played piano, cello, double bass. Played in London School Symphony Orchestra. Favourite areas of music. Recalls influential teacher, Miller, his advice. Recalls headmaster's advice. Did 2 years at Bristol University. Lived with mother till age c42 in family home. Employment: Started as ledger clerk. Describes only time walking out of a job when employers refused request to be moved to statistical department. Got job in statistical department with another stock broker. Details re work on private clients in the City. Worked on analysis of Rio Tinto Zinc. Mentions present work for mining consultancy. Reference Simon & Coates. This was start of work on the analytical road.
Tape 1 Side B Reason for leaving university early; difficulties caused by malnutrition. Details. View of the North Sea by the City in 1960s. Details re West Sole, British Gas (BG), price paid for West Sole and later gas supplies. BG kept contract deals quiet. Encouragement of BP to get West Sole going. Details. Impact of pricing on later exploration in North Sea; effect of BG signing massive contract for Frigg field resulting in 10-year gap in gas exploration. BG concern re security of supply. Key figures in BG, Dennis Rooke, Vic Coulter, chief geologist at Wytch Farm. Geological details re Wytch Farm. City didn't take notice of North Sea during gas discoveries, did when oil appeared. Details. Early licensing rounds' concentration on southern basin. Own forecast re North Sea's high potential etc. Details re subsequent rounds, Totale, Shell exploration. Burmah crash (1973-4). Creation of BNOC. Start of American interest in 1964 eg Amoco, then eg Occidental in 4th Round (1971). Lack of investor interest in North Sea till c1977. Details re evolution of NSN circulation. View of discretionary licensing system. Description of process of licensing rounds. Details re favouritism, punishment by DTI. Eg Block 16/7/b where BP found Miller field. Eg Block 204/19 which went to Conoco. Mentions John Brooks in DTI. Constant criticism of Government by NSN. For 6 rounds, company work programmes not honoured. Details. DTI letting companies off work commitment. Explains preference for American system. Periods of control by Government, eg Conservatives in 1979 re tax. Opinion re retroactive tax changes.
Tape 2 Side A Disallowal of PRT relief against exploration onshore c1985. Details. Stand taken by DTI re license auction. Situation of GOAL who had to sell Claymore unit at loss. Details re Forties, introduction of PRT offsets against exploration expenditure, BP's situation, advantage. Reference to Magnus, Occidental, Claymore, Britoil acquisition. Government PRT action benefiting BP, disadvantaging other companies. 'Roberts' North Sea Laws'. Early City attitude to American entrepreneurs. Own view of independent, major companies in oil discovery, exploitation. Significance of critical 1973 Public Accounts Committee report. Feelings re Labour politicians of the time. Recollections of Armand Hammer, his style. Comments on Tony Benn, 5th Licensing Round, impact of BNOC rights. Burmah situation: forecasts; details re Burmah shipping; recommendations re sale of Burmah shares, reason for process being stopped; reason for Burmah going bankrupt; Government rescue plan involving Ninian field etc. Need for a US-type Chapter 11 here. View of Burmah as a company, its history. Mid-1970s North Sea oil taken seriously. Impact of Yom Kippur war on oil prices (1974). 1980 UK self-sufficiency in oil, impact of this, oil prices. Lord Kearton, BNOC, very anti-industry. Recollection of him speaking at a dinner, reference to Algie Cluff. Kearton's raising of 'gold plating' notion. Details re PRT. Change in capital expenditure rate per barrel of oil $15 to $5. Industry hurt in early period by non-cooperation of companies when risk far greater. Attitude of DTI re confidentiality of well results. Comparison with other countries. Details re making of Enterprise, Miles Bowen ex Shell, Nelson discovery.
Tape 2 Side B Further details re effect of duration of confidentiality of well results etc. Wastage through all companies hiring consultant geologists etc during run up to licensing rounds. Ad hoc nature of licensing rounds. Reference to mini quangos. Reaction of DTI, industry to own ideas; preferential treatment for BP. Reason for Thatcher's success standing up to unions. In oil business, power with oil companies, therefore they are regarded as enemies. Feelings re present minister. Attitude of current administration to oil industry. 7th licensing round most successful after the 4th. Explains. Reference to BNOC, Government pro-business attitude. Explanation re own sources of information for NSN, including weekly lunches etc. Comments on Oil & Gas Enterprise Act (1982), establishment of Britoil. Recollection of forecasts of $100 per barrel. Details re available production capacity at different times. Attitude of Arabs to North Sea Oil Industry, attempt to put it out of business, current Saudi policy etc. Vulnerability of Buchan in 1985, situation of other fields. Comparison of UK and Norwegian oil situations. Opinion of Scottish attitudes to oil, Shetland Island situation. City perception of Scotland re oil. 9th licensing round: comments. Comparison of difference between attitudes of independent and major oil companies in field exploitation etc. Example of Talisman. At time of 9th round Government promoted independents. Tim Morgan's idea for company-specific PRT allowance. Details. 1986 oil price drop: City's greater concern re 'Big Bang'. Effects of this on independent upstream analysts. Current situation: market not used for funding in purchase of North Sea assets.
Tape 3 Side A Consolidation of institutional investment business as in oil industry. Less institutional interest in small business to disadvantage of North Sea. Explains. Concern re wastage of oil in ground, details re infrastructure etc. Major drift away from North Sea. Details. Reduced activity of BP in North Sea; comments on BP, Shell current investment plans. Recent North Sea drilling records of Shell, BP. Comments on licensing rounds. Piper Alpha disaster: City reaction less than expected. Effect of Cullen Report. Changes in type of field development was already under way. Pressure from City only if share prices not performing. Details re Ultramar situation. Recollection of vulnerability of Piper Alpha to an accident, problem with piling, seabed foundations, weight on structure. Feelings re blame placed on Occidental. Attitude of Occidental. 1990: Explanation of significance of weather to oil prices. Government persuaded by BP to cancel Britoil's golden share. Details. BP drilling commitment on Britoil blocks honoured in letter, not in spirit. Explanation of waste of money. Feelings re golden shares. Details re golden shares in other companies. Mentions scrapping PRT relief on exploration. Details re licensing rounds, introduction of tranche system. Lot of trading in frontier tranches. Brent Spar issue: comments on stand taken by Greenpeace, Germans. Subsequent example of interference of Greens re issue of licenses for frontier round, focussing on cold water corals. Details. Attitude of DTI. Opinion of courts. Attitude of media, Greenpeace. View of broader media interpretation of oil industry. Details re Premier issue with Myanmar.
Tape 3 Side B Comments on unreliability of media re oil industry. Original reason for exploration of North Sea. Early technology development. Pressure on big companies to keep downstream businesses going. Examples of Government intervention holding industry back BG Frigg purchase; BNOC. Rrecent situation of non-support of Chancellor Gordon Brown for industry in difficult period. Mention of commercial quantities of oil to be found in North Sea. Feelings about use of oil revenue, situation in UK in 1970s, situation now. Opinion re Euro (currency). Impact of move to EC on oil industry. Opinion of Brussels government. Details re Norwegian protectionist situation. Future of North Sea oil industry, role of startup companies. Own role as a commentator. Concern re lack of through-thinking in industry. Little change in recent finance acts re North Sea. Opinion re taxation and North Sea. Reference to Miles Bowen, Nelson Field; Burmah. Industry has not helped itself. Comparison of attitude of BP, Shell to oil price. Reason for oil companies appearing conservative: taxation situation. Nobody in politics believes the industry, therefore not prepared to make concessions. Oil industry not listened to. Details re personnel associated with DTI, Jim Aitkin, Lord Simon, John Brooks. Feelings about own level of influence. Attitude of Brooks. Future plans for NSN, level of support. Lack of other analysts of North Sea. |