Home Environment Shoulda Gone Fracking

Shoulda Gone Fracking

Author

Comments

Do you recall back a decade when the conversation was about whether fracking would make a difference to gas prices or not? And the general consensus among those against fracking was that whatever the amount we actually found in green and pleasant GB that wouldn’t make any difference to the price?

The whole of Europe’s interlinked system is abnormally short of gas. It is the result of cold weather earlier in the spring; rocketing demand for liquefied natural gas (LNG) in Asia; and a surge in EU carbon prices to €52 a tonne, driving a coal-to-gas switch in power plants.

Putin has seized his moment. Gazprom is working to rule, supplying minimal contractual volumes. It has stopped bidding for extra capacity through the Ukraine pipeline (bar a trivial amount), and pointedly failed to bid for any extra flows through the Polish pipeline for the rest of the year. In short, it has cut off the supplementary flows necessary for seasonal rebuilding.

Being subject to a monopoly supplier doesn’t sound so good now, does it?

European gas prices have spiralled to a 13-year high of $10 per million BTU (British thermal units). They could go much higher if there is a panic scramble for supplies when the first frost arrives.

Wholesale gas prices in the UK reached a record 93.22 pence per therm in early July.

Fracking was going to come online about about one third to one half that.

So, err, fracking was going to make a difference to UK gas prices then. Perhaps we should revisit that decision?

SUPPORT US WITH A SUBSCRIPTION?

2 COMMENTS

Comments are closed.

expunct

in British English
expunct (ɪkˈspʌŋkt)
VERB (transitive)
1. to delete or erase; blot out; obliterate
2. to wipe out or destroy

Support Us

Recent posts

Agatha has been published.

Aunt Agatha has been published (the money came from an anonymous donor). It was £2500+ If you'd like a copy, donate £10+ and you'll get...

American Hyperconsumerism Is Killing Fewer People!

This report does not say what the Guardian headline writers think it does: Three Americans create enough carbon emissions to kill one person, study finds The...

Contracts Often Lag New Revenue Streams

I've been - vaguely and not with any great interest - anticipating a story like this: Scarlett Johansson sues Walt Disney over Marvel’s Black Widow...

Richard Murphy Rediscovers Monetarism

We have a delightful example of how Richard Murphy simply doesn't understand the basic nuts and bolts of the economics he wants to impose...

Vox Is Missing The Point About Having A Constitution

Not that we should be all that surprised by this from the progressives at Vox. No government- well, no one not controlled by...

Recent comments