Is it time to turn gas into oil?

February 25, 2013 5:09 pm by Nick Butler

Oil refinery. Getty Images

The energy market is moving on two very different tracks. Oil prices are stubbornly high and gas prices are low, especially in the US, and look set to fall further across the world. The question is when, if ever, will these two tracks meet?

Let’s start with why the oil price at $114 a barrel for Brent remains so high. There is no physical shortage and demand growth worldwide is minimal. The answer lies in fear of what might happen next. The threat of an open conflict between Israel and Iran may have receded but there are enough uncertainties in the market to keep people nervous. Libya is out of control because of the limited international support for the new government following last year’s military intervention by France and Britain. There is continued nervousness about events in Algeria after the terrorist attack last month and concern about the negative effect on investment of the renewed outbreaks of violence in Iraq. Read more

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Posted in Gas, Oil |

Does the UK need new nuclear?

February 21, 2013 10:16 am by Nick Butler

Getty Images

The negotiations between the UK government and EDF over the contract terms for new nuclear development continue. As well as a sizeable gap on the strike price there is also disagreement on the distribution of risks. In some ways this is just a normal negotiating process but behind the meetings and the attempts at news management are two questions.

The first is whether the UK really needs new nuclear. Read more

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Posted in Nuclear, Policy |

UK needs a coherent energy policy

February 19, 2013 10:29 am by Nick Butler

Ofgem warns bills could rise as UK may need to import more gas. Getty Images

Alistair Buchanan’s warning about the vulnerabilities of the UK energy supply system is serious and timely. The absence of a clear overall policy for energy supply and consumption means that in his words consumption levels are likely to be dangerously close to maximum capacity at times over the next few years and that UK consumers face the risk both of steadily rising prices and interruptions of supply.

It is impossible to disagree with these conclusions from Ofgem’s report. They are based on facts and hard analysis. Read more

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Posted in Electricity, Policy |
From FT.com February 17, 2013

If any company knows about the highs and lows of the British economy, it is Merseyside’s Cammell Laird – one of the oldest names in British shipbuilding.

Founded nearly 200 years ago, its sprawling yards across the river from the city of Liverpool have launched more than 1,350 vessels, from a US Confederate raider to the steamer built for Dr Livingstone’s Zambezi expedition.

 Read more

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Posted in Electricity, Renewables |

Climate change: time for Plan B

February 11, 2013 11:30 am by Nick Butler

How will Barack Obama tackle climate change? Getty Images

The comments in President Obama’s second inaugural speech on climate change have encouraged campaigners to think that something substantive is about to happen. It is always good to be optimistic, but the hard question is what exactly is he going to do and what will it achieve. Read more

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Posted in Climate, Policy |
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