As the FT has reported in an email this morning:
Centrica, the owner of British Gas, has warned of soaring prices caused by a global supply crunch, which could raise household bills and force energy-intensive businesses to curb activity this winter.
Natural gas prices are at record levels for the time of year, trading at about five times their level two years ago. European countries could face supply issues this winter when demand is strongest because gas providers have been unable to fill storage during the summer.
Four thoughts.
First, the sooner we end our dependency on gas the better. It is, very obviously, an unreliable source of energy.
Second, I do wonder how much of this shortage is engineered to force a price increase and to seek increased investment in fossil fuels, as if the industry is trying to make a last gasp attempt for survival. Sorry to be so cynical, but why not?
Third, you can be sure that this will increase fuel poverty.
Fourth, I have no doubt that any resulting inflation will be used by those economic wizards at the Bank of England to seek to justify interest rate rises to punish us for our overconsumption of basic commodities without which we cannot at present survive, so compounding the problems created by this issue and helping drive the UK towards the recession that it seems we musty almost inevitably have now.
It seems as if neoliberal economics is destined to doom, and wants to take us all with it.
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I can give you a 5th thought. The local energy project I am doing in the Uk could deliver (using renewables):
lower cost electricity (40% less)
green hydrogen (cheaper than nat gas)
with prices fixed for circa 20 years.
For this to happen requires the participation of people/households. What we propose is somewhat new, & people are notoriously bad at “handling” new. Perhaps the gas price events will focus minds, we shall see. One thing for sure: no need to stick with fossil fuels – RES can deliver zero-carbon energy cheaper. (lots of details missing from this btw).
I’m worried that neoliberalism will kill off all the people who simply don’t agree with it and it will that that is left standing like a flagpole on a dead society.
I submitted a comment on this post yesterday highlighting the success of the Green fantasists were having in influencing anti-fossil fuel policies in many of the advanced economies and that this was leading to a genuine shortfall in investment in natural gas exploration, production and supply at the same time as many economies were switching from coal and oil to gas – and that the first reaction is always sky high prices, but it seems to have got lost.
No – it was deleted by me
You realoynneedvto be more respectful to be here
You undermine your own position by being rude so often
It’s your forum and you can delete with gay abandon. But I would contend that it is not rude to point out that it is a fantasy to believe that we can shut down the entire fossil fuel industry and its energy outputs will be magically replaced by non-GHG emitting energies.
We’re going to need natural gas and its infrastructure for the foreseeable future as countries shift out of coal and oil, as CCS is developed and as hydrogen is introduced. There is a requirement for investment recovery over the long-term, since these assets are invariably long-lived, specific and dedicated or else there’ll be no investment.
Paul
It would seem that your fantasy is that we can survive climate change without change
I think you need to smell the coffee
Richard
Oh please. Is that the best you can do? The changes are going to be profound, but they have to be systematic, economically achievable and able to secure democratic consent. Coal is gone, oil is on the way out and natural gas will be used to the extent that it can be consumed in electricity generation, industry and hydrogen production in clusters with CCS. At long last we’re making some progress on that here.
But that is an anathema to most Greens – and don’t even mention nuclear.
Paul
You are the one threatening our future
Your time here is over
Richard
The CCS comments by Mr Hunt are rather neatly (& hilariously) rebutted here: https://youtu.be/MSZgoFyuHC8
In places such as Spain, a combo of PV+electrolysers can produce H2 (in mega-tonne quantities) on a £/kWh basis cheaper than nat gas.
The planet has no shortage of sunny places (like Spain)
There are plenty of studies suggesting that nat gas exploration tends to lead to plenty of leakage (methane is a very strong GHG).
Most of the oil&gas majors (mafia?) are trying to keep the party going & one could speculate that the latest price hike is part of that.
World has the tech to replace nat gas with green H2 & at a price that is comparable to nat gas. What’s not to like? (I guess if you are in the oil&gas industry).
Mr Hunt may be gone – nevertheless the above is an effort to refute his assertions – because that is all they are – with some facts.
Thanks