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Posts Tagged ‘Drops of Black Gold’

John Milne Book Launch

John C Milne

“Dubs” is a term used in Aberdeen and northeast Scotland to describe all varieties of mud. That is the first thing I learned in reading John Milne’s excellent book “DUBS, How the Oil Came North.”  John’s first job in the offshore industry was with a drilling mud supplier back in 1969 when he was still a college student.  John presents a series of amusing and informative anecdotes about hie work experiences between 1969 and 1973 during the early years of North Sea offshore exploration. The book is available through the publisher, PlashMill Press. Good read!

I also recommend Bjørn Vidar Lerøen’s excellent book “Drops of Black Gold,” which

Drops of Black Gold - Statoil

chronicles the history of Statoil and Norwegian offshore oil and gas development. The book includes a now famous 1962 letter from Phillips Petroleum to the Norwegian government. In the letter, Phillips seeks exclusive rights to the entire Norwegian continental shelf in return for conducting a seismic survey program. Hey, nothing wrong with asking! 🙂

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Yesterday, I was fortunate to receive a copy of Bjørn Vidar Lerøen’s excellent book “Drops of Black Gold” which chronicles the history of Statoil and Norwegian offshore oil and gas development.  Of particular interest was a letter on page 17 of the book (not available online) that I had heard about but hadn’t seen. The letter, dated October 29, 1962, is from Phillips Petroleum to the chairman of a Norwegian government committee considering offshore oil and gas exploration.

Phillips’ request is quoted below.  You have to give  Phillips high marks for taking an aggressive negotiating position (or was it pure chutzpah?).  No small lease blocks for them.  Phillips asked for the whole Norwegian shelf including any future additions! And what would they offer in return – a seismic survey program costing an estimated $1 million.

We have reason for believing that the geologic basin in which large reserves of natural gas have been discovered in Holland may be extended northward into the Norwegian portion of the North Sea. Therefore, Phillips Petroleum Company is interested in obtaining from the Norwegian government an oil and gas concession covering the lands lying beneath the territorial waters of Norway plus that portion of the continental shelf lying beneath the North Sea which may now or in the future belong to or be under the control of Norway.

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