28/03/2012 Newsnight Scotland


28/03/2012

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many a minister and their civil Tonight on Newsnight Scotland, the

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latest on the North Sea gas leak. Is this a minor incident, as Total

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hopes and believes? Or could it turn into something much more

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serious? Also tonight, an experiment on Bute might pave the

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way for a decent broadband services all over the Scottish countryside.

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Good evening. There is still a cloud of poisonous and explosive

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gas seeping out of the North Sea, and to the best of our knowledge,

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there is still a flare of flaming gas just a few hundred metres away

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from it. There is universal satisfaction that there is no

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immediate threat to human lives, but it is still unclear exactly how

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serious the leak at the Elgin platform will prove to be.

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There are three issues here. What is happening with the gas leak, how

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to spot it and what they have been telling us about what they are too.

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Here they were on Monday. platform, all the power was

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isolated so that there were no sources of ignition. That reduces

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the chance of ignition. I can't promise it will not ignite, but we

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have minimised the risk. But we learnt last night, as confirmed by

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the oil company, that there is a flair still burning on the Elgin.

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By saying we have switched off all normal sources of ignition, we are

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saying we have switched off all sources of electricity in those

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areas. The flair is designed to get rid of gas coming out of the

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process under those conditions. It is a normal thing to operate at

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that time. Which prompted the Scottish government to call for

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full disclosure. Total are concentrating their efforts on

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trying to fix the problem, but they have to put all the information

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they have into the public domain and appeared to the principle of

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openness and transparency. industry claims Total has been

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concentrating on what really matters. It has conducted itself in

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an exemplary fashion as far as safety is concerned. 230 people

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were safely evacuated. This is the latest image released by Total of

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the completely deserted Elgin. It is not obvious from the picture

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that the flair is still a light, but we are assured it is. It is

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also not obvious what happens next. Events in the North Sea oil fields

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are also watched closely from the other side of the sea. A short

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while ago, I spoke to the President of the Bellona Foundation, a

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Norwegian based environmental organisation based in Oslo. I asked

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for his assessment of the situation. If we are lucky, this is a pocket.

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If it were to go empty, that would be the best scenario. If we were

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down to one of these high temperature, high-pressure

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reservoirs, for example if it started to leak and there was

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pressure from one of these reservoirs, that is the road to

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hell and then you are really in trouble. But we are not seen a

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dramatic increase of the leak during the last 24 hours. But we

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know it will be very complicated to work with any kind of operations to

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stop this leak. On the Flat, if this should continue burning for a

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several days, Total are saying at the moment they are not so worried

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about it because the wind is blowing the cloud of gas a way. The

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must be worried that the weather will eventually change. Is there

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any way you can put out a flower without putting someone onto the

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platform of? It is very complicated. When they abandoned the platform on

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Monday morning, people had been fighting for 15 hours to get the

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situation under control after people reported bubbling in the

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water of. Their chances to do anything are limited. The CEOs of

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Total have confirmed that it may be a long operation. The best chance

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we have to avoid that is if the leak is coming from the pocket was

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of wire -- reservoir, or part of the reservoir is empty. But there

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is no information on that, and that worries me. You seem to be

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suggesting that, should the pocket not empty itself within the next

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few days, and should there be a necessity of digging a relief well,

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that might only be possible by deliberately setting the gas on

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fire so that vessels can move into the area? That is true. If this is

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coming directly from a high pressure reservoir down there, for

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example if they are connected to the Franklin West, that could last

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for many years. The drilling platform they have ordered is

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absolutely capable of drilling down to this depth. The question is, how

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far do they have to stay away? Because if you have several days

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with no wind and the gas leaks, or you have a build-up of pressure

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under geological formations because of underground leaks that could

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burst, you have to be quite far away. That is one of the big

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choices Total will now face, how close they go. South to stay last

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question. This particular platform was very high-tech when the wells

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were drilled. Looking at some of the technical information that

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Total have produced, it seems that they came across technical problems

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later with these high pressure, high temperature Wells, that they

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had not anticipated when they killed them. We saw the incident

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two years ago. Are you worried that as we become more and more high

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tech, because reserves are more and more difficult to get out, the

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danger of serious incidence is increasing? This is very serious.

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And again, to drill in such high temperature reservoirs is a risky

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sport. I am not so sure that there are a lot off easy oil sources left.

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We need political discussions over what kind of regulations we should

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have in the European Union on this very complicated, high risk action.

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As in the Deepwater Horizon, we see that gas leaks from offshore

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platforms could be very complicated to drill relief wells. We have

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criticised this in no way, places which have similar problems if a

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gas leak occurs, to get close enough to drill tests at the risk

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of an explosion. This is one of the things that has been underestimated

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by the government and by the oil I am joined now by Inverness by the

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energy consultant Tony Mackay who has been walking on North Sea oil

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forecasts for Scottish Enterprise. The last point made by a Frederic

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Hauge, that we are getting into areas of technology which we have

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not really explored before. And that there has not been much debate

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about whether this is desirable for. Well, we have had nearly 40 years

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of production from the North Sea. Most of the fields and a declining.

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The companies on exploring these more difficult fields, the high

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pressure or high-temperature fields like Elgin. And more recently, the

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deep-water fields to the west of Shetland. They are certainly moving

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towards a more technologically difficult fields. But Elgin has

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been producing for 10 years without problems so this is a very unusual

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problem. It is true that it has been producing for a decade without

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problems but it would appear that Total's own engineers run across

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problems when it came to this business of what they call him-

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filling Wellss -- infilling Wells. And there have clearly run into

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problems when they tried to kill off these wells. Just as these

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wells have run in production terms in terms of 10 years, does not mean

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there's and no problems when you try to stop them. I agree but we

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must accept that working in the North say is a risky business.

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You're working in the sea and working with oil and gas which are

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volatile hydro-carbons. But the problems we have had in the North

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Sea over the past 20-30 years since Piper Alpha up on a relatively

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small scale. More fishermen are killed in the North Sea every year

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and people working in the oil and gas industries. I think the

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industry's track record since Piper Alpha has been very good. I am an

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economist, not an engineer but so far I think that Total have handled

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this problem with Elgin very well. This business about decommissioning,

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will that be one of the big things? Over the next few years? Yes, it is

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a mature province in the North Sea. A lot of the fields are very near

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the end of their productive life. The Brent oilfield for example I

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think will finish very soon. That has been producing for 30 years and

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will the big markets and opportunities over the next decades

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will be removing the pipelines and platforms. Obviously not Elgin

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unless there's a big disaster in the next few weeks. We must accept

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that we have had a long history in the North Sea oil industry and it

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is the only declining. That presumably is a business

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opportunity as well. Yes, surprisingly the industry is going

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through a boom period at the moment because of the higher oil prices.

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If you're buying petrol or diesel you will understand that. But

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because of the high prices, a lot of the fields that determined

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things whether they were economically viable are now being

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developed for the next few years we will have a high level of capital

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expenditure. After that, say 2015 onwards, one of the biggest growth

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markets unfortunately is going to be a removal of the platforms -

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Brent and 40s and a lot of the oil field. The platforms will have to

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be removed, the top signs removed, a lot of decontamination and it

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will be a big market for the next decade. Tony Mackay, thank you 4-

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joining us. The problems of bringing fast

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internet to rural areas are of special interest in Scotland given

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that outside the main centres of population they are in a lot of

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wide open space. An experiment is under way on the Isle of Bute to

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use old broadcast frequencies to deliver super-fast broadband. Our

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reporter has been there to see it Good communications, whether the

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traditional ferry or super-fast problem, I especially important for

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island communities. Cut off the Paris service and the island is in

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trouble. In the modern area, if the rural areas cannot show the

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benefits of broadband, the impact is digital isolation. -- cannot

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share the benefits. There's no question that this is beautiful but

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also it is remote in a digital cent. More of us use devices like this to

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communicate, share and connect with the world. And if you do not have

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broadband it is hard to take part. At the southern end of Bute, a

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quiet revolution is under way which is already transforming lives and

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ultimately aims to do the same across more of rural Scotland. For

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example, the local hotel almost became the pub with no beer because

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of a local problem. With the internet we had before, it was a

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nightmare. It was going to become very difficult to order a beer the

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way our suppliers are pushing us to use online ordering. I don't like

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ordering over the phone and the representatives are visiting less

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so without broadband it would The experiment on Bute uses what is

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called white space - gaps in the former broadcaster air waves which

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are increasingly available due to the switchover to digital

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television. It works like this. A dedicated transmitter on the

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mainland beams a signal to an exchange building on Bute which

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then provides broadband internet access to local residents. If it

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can be shown to work reliably, it is a much cheaper option for a

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rural community than using an This is a great technology for the

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moment. Pushing out into the country. We are up against

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boundaries and this takes us that little bit further. It gives us a

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service to the people at the edge of the network and eventually the

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new technologies will push things a bit further and they will be taken

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over but at the moment as a stop gap, it certainly helps these

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communities especially in rural areas. The transmitter at the local

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exchange relays the high-speed connection to local residents who

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need special equipment to get hooked up. It all seems to work.

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And this is what it looks like if you send a clip recorded on your

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iPad or iPhone or of the device into the system and then by e-mail,

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you can get a video out of Bute and do it streaming as well. A couple

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of miles away, online form-filling for animal passports and the

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ability to do general research on stock is changing one lives on one

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local farm. Looking back at the depth of pedigree and cattle, it is

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a lot handier than doing it on paper. Has your life changed?

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life has not changed, maybe my wife and cats just have a few more

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options are doing things with them. You are still dealing with animals,

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not faced like working like mad or tweeting? No, nothing like that at

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all. This Skype call from the middle of nowhere worked fine but

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his white space really the shape of things to come? That is the Isle of

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And number of technologies are being used to fill in this gap that

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will never get fibre networks. We have got this, white space,

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satellites, people are talking about using 3G. In a sense, they

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will all be intermediate technologies because you can see

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the demand for proper fibre building. Once people get people a

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bit better, they want to move on to the next stage. There will be

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pressure. It might be intermediate This and this where both

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revolutionary in their day and it is hard to think of life without

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the postal service or telephones. Nowt the need for broadband is not

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far behind but the economics remain a massive challenge. It is part of

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working with the Government, they have got a strong strategy in

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Scotland to deliver future broadband services so we must see

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how we can fit this into the mix. Industry investment will be

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important but it's at important So far, nobody has worked out had

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to move an island. Even if they wanted to so even with their

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regular every service, Bute will always be geographically remote but

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the experiment here shows that technology can close the digital

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divide and in that sense at least, Bute is not so far down the water.

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Tomorrow's front pages - the Herald leads on the story of Cameron under

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fire about buying petrol panic and the picture is of a queue at a

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petrol station in Edinburgh. The Scotsman - the same story, petrol

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sales soar by 45% as drivers panic with the same picture in Edinburgh.

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UK Government accused of stoking fuel crisis as Union prepares for

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talks. The Guardian leads on of a Council of Europe report on

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Refugees, a dark day for Europe verdict on the refugee boat left to

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die. That is all we have time for, we will be back tomorrow, and until

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We are going to see some changes with our weather for the weekend

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before Thursday, think more of the same. A chilly start and then

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plenty of sunshine. More cloud across western Scotland and the

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north -- west coast of Northern Ireland. Another sparkling day in

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England. Temperatures reaching 21 degrees and further south, we could

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see temperatures of 23 degrees. A bit more of a breeze across parts

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of Cornwall. Coming in from the north or north-west means the coast

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of Wales will be a bit cooler although the south coast could see

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temperatures of 22 Celsius. Lots of sunshine here and across most of

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Northern Ireland but a change on the northern coast. A cooler day

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here. A cloudy day in the western coasts of Scotland. Through the

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central belt and much of the north- east tippled again be fine on

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Sunday. We will see increasing amounts of cloud as north-western

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areas could be a great day. -- a dull day. Temperatures low on

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Friday in the south but essentially another fine day with more spring

:20:38.:20:41.

sunshine to be had. The area of cloud across the north-west

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expanding into parts of northern and western Wales and generally a

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