British energy company BP is shutting down its North Sea Forties pipeline system ahead of a workers strike at Scotland’s Grangemouth refinery
The closure of the line
, which transports up to half of the oil output from the North Sea, means production could stop for as many as 65 oil fields that send fuel into the pipeline.
Meanwhile, oil supplies in Nigeria have been reduced by 140,000 barrels per day due to rebel attacks on pipelines.
These events come amidst recent calls from world energy producers to increase investment in energy infrastructure, writes the Financial Times
Saudi Arabia Oil Minister Ali Naimi
has cautioned that limited oil production capacity worldwide is restricting oil supplies.
To expand supplies, Naimi says, “we must create an environment that encourages investment in energy infrastructure along the entire value chain.”
Naimi and other OPEC ministers are arguing that more investment is needed in oilfields and refineries.
However, OPEC won’t be able to do much to remedy the lack of global output capacity, the head of Libya’s National Oil Corporation, Shokri Ghanem
, told reporters on April 22.
Echoing that sentiment, the deputy director of the International Energy Agency said other countries could help alleviate these constraints by doing more to “encourage investment” in the energy industry and give oil companies “greater access to their reserves,” according to the Financial Times