| Weather: Drizzly at times with strong South Wester |
| Distance covered today: 25,8km (16.0mi) |
| Last night's B&B: Little Neath Barn |
| % Complete: Cumulative distance: 33.6% : 97.0km |
| GPS satellite track of today's route: Day 4 (click!) |
In the seventies the international oil industry consisted of seven major players known as the “Seven Sisters”. All the “majors” owned integrated upstream and downstream businesses, which usually involved the refining of crude oil in most of the countries in which they operated. Milford Haven was a particular focus for their activity in the UK, and over time Exxon, Gulf, Texaco and Chevron owned and operated refineries here (i.e. four of the five US majors; only Mobil was absent. The other two sisters were Shell and BP whose refineries were elsewhere in Britain).
The attraction of Milford Haven Waterway was firstly its great depth; formed from glaciation during the last ice age, it is one of the deepest natural harbours in the world. Even Lord Nelson praised it as “the finest port in Christendom”, second only to one in "Ceylon". This means that it could easily accommodate VLCCs (Very Large Crude Carriers), whose enormous draft meant that they can otherwise only discharge at offshore single-buoy moorings, a process that is subject to interruption by adverse weather conditions and is also otherwise inefficient.
The commotions in the Middle East in the Seventies onwards meant that the Suez Canal was unreliable and crude oil from the Gulf increasingly made its way around the Cape in VLCCs bound for European and American ports. Because of its depth and its location, Milford Haven was an ideal recipient. As is often the case, a concentration of industry attracts other participants (flowers in Holland, IT in Silicon Valley, finance in London and New York) and before long Milford Haven was the locus of a significant proportion of the UK’s crude oil imports and refining activity.
Now it is in decline. Two of the four refineries have been closed. All of the majors have gone, (reflecting their decline on the international stage as well, of course). True, they have been replaced by two shiny new LNG (Liquefied Natural Gas) import terminals and some storage and trans-shipment facilities, reflecting the general change in British commerce, where we now import foreign products through specialist terminals rather than make them here ourselves. Few people are required for this activity.
The change is significant. According to Cardiff Business School, the industry now supports employment of 3,800 ftes (full time equivalents) or 40% of employment in the economy surrounding the Haven. I don’t have a figure for the local population, but it is certainly at least an order of magnitude larger than this. The scale of unemployment is therefore immense and today as I trudged through the towns and villages that surround the Haven, the scale of deprivation was obvious. No-one was on the streets (even though it was a Sunday). Pubs, shops and business premises were boarded up; there is almost no activity at all. It is all very depressing and reminded me of my observations in parts of England during my LEJOG walk.
Why has this decline happened? There are a number of reasons. North Sea Oil (itself now in decline) favoured refineries on the East coast. Intense volatility in oil markets has reduced the size of the optimum ship, because the risk involved in buying a cargo of crude oil on a VLCC is huge, despite its efficiency.
Perhaps the most important reason is the rise and rise of huge, efficient refineries in the oil exporting nations. It takes a significant amount of oil to energise a refinery and this can be supplied by “free” surplus gas in the Gulf. Moreover, product sales don’t count against OPEC crude export quotas, so there is an incentive to sell product at highly competitive prices. Finally, the UK refineries were designed to maximise petrol production, yet now we use mostly diesel; an expensive option for our refineries.
As a result of intense competition, the majors have lost faith in the downstream market and are putting most of their eggs in oil exploration and production. There is no money left for downstream investment. Even the efficient specialists who have absorbed their castoffs are struggling to make a go of it and I understand they are running at a loss. The virtually unmanned product import terminals and the LNG importers are now the only game in town.
When I was a kid, a friend of my father’s advised me to become a Chemical Engineer. He hadn’t seen “The Graduate” (“Plastics, my boy, plastics!”), because it hadn’t yet been released, but I promise that the film reflected my own scene with him precisely! (though, to be fair, I never did meet Mrs Robinson!)
The lesson from me to all youngsters is that they should not listen to their elders about career choices. No matter how wise they are, they will always be basing their opinions on a world which already no longer exists. Though, for the same reason, this is probably also wrong!!
Incidentally, tomorrow is a rest day for me, so you will be spared my trivia, unless of course my planned visit to Pembroke Castle so inspires me that an interim post becomes mandatory!
The largest refinery still operating in Milford Haven, now owned and operated by Valero, a specialist refiner from the US, after a number of changes of ownership
Mayflower, or hawthorn blossom in profusion
No-one can persuade me this isn't beautiful!!
Two small product carriers at the loading gantry
The path through the trees between the refinery and the sea
An underview of a pipe-rack
A ship in the valley!
Wild garlic
The path was growing less used. Apparently, most walkers don't share my enthusiasm for the smell of hydrocarbons!
A newly-born foal, very unsteady on its pins!
By now the path had virtually disappeared. It got even worse. Eventually, I had to ford a river on a fallen tree, only to discover that the actual path lay 50metres downstream!
I never would have believed I would have seen this reference to England in Wales!
Pembroke Castle, my destination tomorrow!
Hard times in Pembroke Docks as elsewhere on the Milford Haven Waterway
I was about to go and read them a lecture on the concept of contour paths when I realised it was Sunday and they were all out walking!
The Cleddau Bridge, A fellow in a pub told me it fell down as they were building it, killing some of the workers
One of us! He gave me a discreet wave as he saw me, as if in some secret society. We nutters have a grudging respect for each other!
As only a chemical engineer can, Rob really enjoyed your blog today. He says we have a smaller version of this situation in Sarnia, Ontario. You can have a chin-wag about it all when you next meet.
ReplyDeleteOf course, I found the photo of the young horse much more uplifting! Flora and fauna are what turn my crank. And a note to Veronica about the trout lily: I just consulted my wildflower guidebook for Britain, expecting to find another name by which you might know it...but it appears you don't have this flower! Pity...it is very small but has a nodding yellow "lily" shape, but the name refers to the mottled leaves, thought similar to the markings of the brown or brook trout. It is also known as Dogtooth violet (the bulb is shaped like a dog tooth, according to my North American wildflower guide), even though it is not a violet!
Phyllis! We have Dogtooth Violets! Probably abou 6'' to 8'' tall and vibrant yellow nodding flowers. I wonder if they are the same plant! Known also by their formal name of Erythronium Pagoda (I assume in reference to the shape of the flower?) Julian, any comments?
DeleteAs for that poor foal, it must have endured one of the tougher Springs in terms of the weather. Looks nice quality though. Vx
No word from Julian yet, but I checked my flower guide and our Trout Lily is Erythronium americanum, suggesting it is a native species. Have a look on Google Images, Veronica, and you will see it is similar to your E. pagoda, but yours looks more robust and a reference I checked said it is a cultivar,so perhaps it was developed from my native one. The leaves seem to have the same mottled colouring.
DeleteI have a few of these leaves showing in my own garden, but they never bloom! Must be missing the right nutrients?
This level of botanical insight is way above the generally turgid and base quality of this blog! And Julian and Fiona have yet to add their insight! Imagine if you lot went walking together!?
Delete"Yet to add their insight"..........?? The Hobbits have been left out of the loop a bit...... didn't get this post until this am (Tuesday!!)and had stopped commenting anyway as we didn't think ours were being posted as none of those previously left had received a response!! Explanations and apologies accepted Kevin, we seem to be back on track - tho' the Turkey house accommodation still remains a possibility just to keep you on your toes.
DeleteYes the description is of the Erythronium - we have a couple of cultivars in the garden including 'Pagoda' which is the most vigorous. Not yet in flower, but the buds and leaves are there just waiting for this wretched cold weather to end. That blackthorn blossom should be well over by now and all the hedges nice and green. Instead they're only just showing signs of life. Frost again last night but things are looking up for the rest of the week - at least you should have a dry few days Kevin.
And the web indicates that the Pagoda in my garden is indeed a cultivar of your wild one Phyllis. How interesting you have seen them 'in the wild'.
DeleteI am so grateful, the Grumpy Hobbit is back on authoritative form! Phyllis, between Julian and Veronica, there is your answer. (Not that I understand any of it). Still, ho hum, up at 4.30 am tomorrow to make the tide. Such is the lot of the poor, unfortunate walker....
DeleteHavent read it yet, but Yasmin and I enjoyed the pix from day 2 and 3 yesterday. The coastline is splendid, but we didnt see anything much in the way of ups and downs - I think you should change your specs!
ReplyDeleteAnd I have a bone to pick with all that nonsense about the poor old Armed forces being starved of resources. As you should very well know there is some management content in making good use of budgets, being cost efficient, etc. And the history of these armed forces is replete with examples of hideously gross wastage, dreadful cost planning, and sheer economic incompetence. That may be due to there being too many frontliners, and not enough management back home, but surely the top brass should have some responsibility in all this?
Good rant huh? I really should start walking as well, but its such an effort!
Spoken like a true Guardian reader! I do though have numerous observations from sites all over the UK. If it's a bluff, it's well done! I agree that there have been lots of stories about DoD wastage, bungling etc., but my point is about training and the state of those facilities. And yes, you should be walking, pulling me up the hills!
DeleteAnd Kevin, your 'Hawthorn' looks very much like Blackthorn, which has some very nasty thorns on it! Don't every get pricked by one, they tend to pruduce a nasty reaction. Thiese flowers will eventually become sloes, as in Sloe Gin, but it's quite a job picking the fruit for the making of the gin!! Yummy, though. Vx
ReplyDeleteI'll take your word for it! I will also sleep my distance!
DeleteAnd you sound like a grumpy old Telegraph reader! But you should be recovered now after a day stomping around Pembroke Castle!
ReplyDeleteThe Telegraph! Perish the thought! The Economist, perhaps? Or maybe even Der Spiegel! But you are right, I am much recovered. Turns out, Pembroke Castle was never breached by the Welsh. No doubt your forebears were skulking within, defending English honour. If only they had known that after all their efforts, their progeny would slope off over to Crete, just to catch some rays....
Delete