Gas

Gas and power prices increase across the board

There were continued rises in the gas and electricity markets throughout May, which was supported by increasing oil and other commodity prices. Seasonal gas prices jumped 6.3% throughout the month and winter 16 gas prices rose by 6.9%. It is believed these increases were driven by much higher gas demand due to the UK energy mix being dominated by gas fired power stations.

Will the UK’s fracking industry take off in 2016?

The Government are currently locked in a battle with Lancashire County Council over Cuadrilla’s plans to start fracking in the area. Lancashire County Council say that the drilling will have too great of an impact on the landscape and will create too much noise.

Gas system under supplied

npower have reported in  their daily market report that the gas system in the UK is ‘slightly’ undersupplied and demand is higher than the seasonal norm. It is forecast that the linepack will be 6mcm short.

The UK has ramped up storage withdrawals to combat the higher demand and exports to Belgium via the IUK pipeline have been reduced to 7mcm a day, down from 17mcm a day. It is believed that the combination of these two actions will be enough to combat the slight undersupply and not affect prices.

New well to be drilled at York Gas Field

A fourth well is to be drilled at York Gas Field by Centrica, who have invested £80 million to extract gas from the field till 2020. The additional well will allow Centrica to access an additional 20 billion cubic feet of gas, which is enough to heat half a million homes throughout the year.

Climate change to put considerable pressure on energy sector

It has been suggested by the World Energy Council that the energy sector will be put under considerable pressure over the coming decades because of climate change. The number of extreme weather events has increased by over 400% from 1980 to 2014, and it is because of statistics such as this that the World Energy Council are warning the energy sector.

The EU and Ukraine agree a deal with Russia for gas

An agreement has been reached by the EU, Ukraine and Russia over the supply of natural gas throughout the Winter. It was thought the tensions between Ukraine and Russia would make reaching an agreement difficult, leading to worries of a natural gas shortage throughout Eastern Europe. The conflict between Ukraine and pro Russian soldiers in the east of the country has killed almost 8,000 people since it began in 2014.

EU holds talks on reducing dependency on Russian gas

After holding talks on how the EU can move away from being dependant on Russian gas it has been revealed that a decision was not made. MEP’s from Eastern, Western and Central Europe had met to discuss how to better coordinate energy policy.

UK Government gives the go ahead for £3 billion North Sea gas field

A new gas project in the North Sea worth £3 billion  has been given the go ahead by the UK Oil & Gas Authority (OGA). The OGA was launched in April 2015 as one of the first moves by the new conservative government to act as the governing body to the North Sea oil and gas industry and assist with economic recovery.

The Culzean field is the biggest discovery made in the North Sea for a decade and holds around a quarter of a billion barrels of oil equivalent. It is expected that it will produce enough gas to meet 5% of the UK’s needs by the time it is fully operational.

Centrica to cut 6,000 jobs

Centrica has stated that it will be cutting 6,000 jobs after the British Gas side of the company had reported a doubling of its profits for the first part of the year. The majority of the job losses will effect the UK and Centrica is hoping that the majority of the job losses will be through redundancies.

The profits of British Gas have risen from 265 million to £528 million from this point last year, and Centrica has promised to create more jobs in other areas of their business to compensate for the 6,000 they will be cutting.

Gas discovery made in the North Sea

A gas discovery has been made in the North Sea in one of its most mature regions, by Norwegian oil and gas firm Statoil and its partner Total E&P Norge. This comes on the same day that the UK authorities have granted 41 offshore exploration licences in a round of awards.

Critics have pointed out that the award to drill does not mean that the company’s will actually drill, however the opposing side state that the fact there is huge demand for the licences shows that the UK’s North Sea oil and gas industry are still attractive.

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