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London sees energy security through shale

British Energy Secretary Michael Fallon said the British economy needs to rely more on domestic energy reserves like shale gas for national security’s sake. "We have to develop more home grown energy like shale," Fallon said in an interview with the Sunday Telegraph. The British Geological Survey in June estimated the Bowland shale formation in the north of the country contains 1.3 quadrillion cubic feet of natural gas. The government says shale could ensure energy security for a country where net natural gas imports are on pace to increase from 45 percent of demand in 2011 to 76 percent by 2030. Protesters last year staged several demonstrations to protest shale operations. The practice is seen as a threat to the environment. The newspaper reported the British economy has relied on imported natural gas since output from the North Sea began its decline in 2005. Fallon said Russia’s grip on […]

Posted On : Published By : Tom Whipple
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BlackRock wades into Scottish referendum debate

©AFP BlackRock has written an in-depth report on the expected impact on investors of Scottish independence BlackRock has waded into the debate on Scottish independence , warning that a vote to break away from the UK would create “substantial issues” for investors. The US asset management giant has written an in-depth report, seen by FTfm, on the expected impact on investors of the 306-year union between Scotland and the rest of the UK coming to an end. BlackRock, which opened its first office outside the US in Edinburgh, believes an independent Scotland would create “major uncertainties, costs and risks” for companies and pension schemes based in Scotland and the remainder of the UK. Investors in UK gilts and equities, in particular financial, utility and energy companies, will be most affected, according to the New York-based fund house. Investments in Scottish infrastructure projects are also likely to be put on […]

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Scottish renewables may falter alone, British minister says

British Energy Secretary Ed Davey said Scotland could face a difficult task in supporting its renewable energy ambitions if it breaks from the United Kingdom. Scotland holds a September referendum for independence from the United Kingdom. The government in Edinburgh said it could support itself economically through oil and gas reserves in the North Sea. Davey told an energy conference in Edinburgh that while the Scottish people could endure alone, unity was better in terms of energy policies. Scotland, he said, is developing its renewable energy sector at a record pace. Scotland accounts for 10 percent of all households in the U.K., but gets 25 percent of all support for renewable energy generation. "If Scotland were to choose to go it alone, maintaining this level of support would take up a greater proportion of national finances," he said in remarks published Wednesday. "This has the potential to fundamentally change […]

Posted On : Published By : Tom Whipple
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Exploring the “why” behind extreme energy

For eight months I’ve been travelling around England and Wales talking about ‘unconventional gas’ – shale gas , coal-bed methane [2] and underground coal gasification [3] , which the media often erroneously conflate as ‘fracking’ [4] . This intensive period of work began last June, and continued into 2014 to meet the continued requests for talks. In particular I’ve tried to tour those areas next in line for extreme energy [5] developments – South Wales [6] , The Marches [7] and the South Midlands [8] . Travelling has its fringe benefits. I get to read a lot; whiling away the hours on trains or in cafés, moving between consecutive events or home. 2013 […]

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Shell Sets Plan to Boost Returns

LONDON—Royal Dutch Shell PLC said Thursday it would separate some of its Americas downstream businesses and sell nonstrategic positions, as well as cut spending in its Americas upstream business by 20% this year, in a bid to improve returns. In a statement before an investor presentation the Anglo-Dutch energy giant said it would drive sharper performance management of its portfolio than in the past, through a more detailed segmentation of the business into performance units. "With sharper accountability in the company, this approach will target growth investment more effectively, focus on areas of the business where performance improvement is most required, and drive asset sales from nonstrategic positions," Shell Chief Executive Ben van Beurden said. The move follows PLC’s as it and other major oil companies have struggled to profit from the explosion of shale oil and natural gas there. BP is keeping ownership of such assets but is […]

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London warns utilities against exploiting Ukrainian crisis

British utility companies shouldn’t use the crisis over Ukraine as an excuse to raise consumer energy prices, British Energy Secretary Ed Davey said. European consumers are wary of a repeat of a 2009 gas contract dispute between Ukraine and Russian energy company Gazprom that resulted in a brief supply disruption. With Russia frustrated with recent political developments in Ukraine, Davey warned utility companies against raising prices in response to the crisis. "Companies tend to buy their gas forwardly, 18 months in advance," he was quoted by the British newspaper the Daily Telegraph as saying Sunday. "So they shouldn’t be using [the Ukrainian crisis] as an excuse to put up people’s prices." European consumers get about a quarter of their gas needs met by Russia. Most of that runs through the Soviet-era transit network in Ukraine. Davey said there was an increase in oil and […]

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Centrica warns of uncertain British gas future

The British economy needs to outline plans to enhance energy security as it starts to rely more on imports to meet gas demands, the head of Centrica said. Sam Laidlaw, chief executive officer at Centrica, told the audience at the CERAWeek energy conference in Houston natural gas production from the British waters of the North Sea has declined substantially during the last three years. "By 2020 we will be reliant on imports to meet 70 percent of the country’s gas needs," he said in his Wednesday address. "So when it comes to security of supply, there is a pressing need for solutions." Centrica in November signed a 4 1/2 year contract to purchase as much as 3 million tons of liquefied natural gas a year from Qatar. British Energy Minister Michael Fallon said "reliable suppliers like Qatar are vital for our future energy security." […]

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Scottish independence: Shell chief wants Scotland to remain in UK

Shell has waded into the debate over Scottish independence , saying it needed political stability in the UK to back up its investment decisions. Ben van Beurden, chief executive, said at the company’s annual reception in London on Wednesday night that it was important Scotland remain in the UK and that the UK remain in the EU. According to the BBC, Mr van Beurden said: “We’re used to operating in uncertain political and economic environments. But, given a choice, we want to know as accurately as possible what investment conditions will look like 10 or 20 years from now. That’s the chief reason we’re in favour of the UK maintaining its long-established place at the heart of the European Union: it provides greater investment stability and certainty. “It’s for similar […]

Posted On : Published By : Tom Whipple
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The rising of the waters

I grew up in the south of England. It is where my family comes from and has lived for centuries. It is my heritage, and wherever I go, it will be in me. This is what your culture does to you: there is no escape from the sediment it leaves within. It is best to get to the point where you don’t need to escape. The south of England of my childhood, and young adulthood, was overcrowded, mostly suburban, crawling with motorways and spreading chain stores; its old human culture was shrinking away. But still, it had frosty downs, green hills, white fields, hedges of blackthorn and woodbine, chalk carvings, ancient barrows, bluebell woods and small, old pubs. Our ancestral home, or our childhood place, stirs conflicting feelings in us. I once wrote a book which, in retrospect, seemed to be trying to reconcile those feelings with each other. […]

Posted On : Published By : Tom Whipple
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Britain’s North Sea plan draws mixed reviews

London’s decision to breathe new life into the North Sea was welcomed by the energy sector, though climate fears surfaced given heavy flooding in the country. The British government said it supported recommendations from retired businessman Ian Wood to secure more oil and natural gas reserves from the North Sea. The government expects to secure $330 billion in the next two decades through the recovery of the 3 billion to 4 billion barrels of oil equivalent Wood says is still left in the North Sea. British energy company Dana Petroleum, which last year started a nine-well, $1.6 billion development project in the North Sea, welcomed the decision. Chief Executive Officer Graham Scotton said in a statement Monday the call to change the face of North Sea operations through more efficient use of new and existing infrastructure "is absolutely vital to the industry’s future success, […]

Posted On : Published By : Tom Whipple