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Oil-bearing Sand and Gas Discovered in Greenland |
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Tuesday, 24 August 2010 15:04 |
Cairn Energy, the Edinburgh based oil and gas exploration and production company, has confirmed that gas and oil-bearing sand has been discovered off the coast of Greenland - a discovery which will alarm environmental campaigners with the Arctic expected to become the latest scene of mass extraction of natural resources.
Already attending site is Greenpeace's ship Esperanza, protesting about the permission granted to Cairn Energy to drill for oil in a sensitive environment. The Esperanza has been subjected to a challenge by a Dutch warship - whose captain is enforcing a 500-metre exclusion zone around the two wells in place, but the presence has been noted and reported across the world.
With the Deepwater Horizon oil spill still fresh in the memory, concerns are being raised about the potential of another huge spill - and an oil spill in the as yet 'untouched' Arctic would have repercussions that could prove disastrous.
The Deepwater Horizon leak was by no means unique, as unfortunately oil spills do happen.
With hundreds of thousands of active oil wells in the world all working as intended, there have been approximately 500 major oil spills (each with more than a million gallons spilt) in the last 50 years.
Certainly any oil spill is terrible news, but on the whole the success rate of clean extraction is better than some would have us believe.
Of course this new find - and subsequent seemingly urgent need to extract, with work already underway - begs the question "what happens when fossil fuels run out?". As yet there is no answer to this question, but clearly the need to find and fund alternative fuel sources must remain a priority for those responsible.
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Recent Changes to Gas Data |
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Thursday, 19 August 2010 13:01 |
Xoserve, the gas industry data manager, has identified an industry wide issue in relation to Correction Factors relating to a small number of gas meters that consume over 732,000 kWh (25,000 Therms) per year.
The Correction Factor compensates for pressure and temperature at a point of delivery and is used during the conversion of the volume of gas to energy (kWh) for invoicing purposes. For some meters a generic Correction Factor has been used which is less accurate than using a specific Correction Factor and this may have had an impact on invoiced volumes for some customers.
All gas suppliers within the UK are affected by this and are waiting for Meter Asset Managers to investigate the issue fully. Initial indications showing that it may take 18 months to 2 years to resolve the issue, as many sites will require a visit from an engineer to ensure that an accurate Correction Factor is calculated from the location of the meter.
Once the accurate Correction Factor has been confirmed, your gas supplier will use this in the calculation of all future meter readings. In some circumstances historical invoices may also need reconciling. However, the gas supplier would only make a retrospective amendment to invoices on a pass-through basis and only if they were to be charged by the Gas Transporter.
We will be updating any affected clients in due course, but if you require further information in the meantime, please do not hesitate to contact one of our Utilities Consultants - we can advise if your gas supplies are above the threshold and likely to see changes. |
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Turnaround in Government Policies Affecting Local Councils |
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Wednesday, 11 August 2010 13:24 |
From Monday 16th August Local Councils will be able to sell generated renewable electricity to the grid. Upon privatising electric back in 1990, which saw the Central Electricity Generating Board dismantled and replaced by three major companies; Powergen, National Power and the National Grid Company - Local Councils were restricted from selling any excess renewable electricity into the grid (other than that generated from combined heat and power). As a result of this policy revision, not only will we see more available renewal capacity, but also, according to the Department of Energy & Climate Change, local authorities in England and Wales could gain up to £100 million per year in extra revenue.
The electricity markets are now a very different animal when compared to the early 90's - with many companies, such as Bizz Energy, emerging and failing, and many more takeovers being seen, most recently and noticeably - EDF's takeover of British Energy in 2009. From the original three above, you can now chalk up in excess of 70 suppliers coming and going over the last 20 years, all to give end users more choice in the markets.
And that's where we come in. With valuable relationships in place with the majority of suppliers, we're able to source best prices with a prompt turnaround in order to give our clients the best possible service and most up-to-date and thorough reports. We liaise with all the major suppliers and many of the smaller ones. We're constantly monitoring their performance and we review our supplier lists at regular intervals; if any supplier, no matter how big or small, fails to meet the high expectations and service levels we and our clients expect, they will be informed of this and be given the chance to improve or face being struck off our list - we don't take commission nor do we have preferred suppliers so you can be guaranteed of impartial, expert advice at all times.
In order to take advantage of our expert Energy Procurement, as well as Utility Management and Energy Consultancy, get in touch now using the links on the left for a no-obligation chat |
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Thursday, 05 August 2010 12:43 |
Some good savings recently from our diligent approach:
£9,160 where a supplier charged on incorrect meter readings
£4,696 where we successfully negotiated a new contract to be backdated six months
£14,021 by amending incorrect meter readings
Just a few examples of savings we find daily for our clients.
Does your Utility Consultancy find regular savings? If not join us and reap the benefits from our highly experienced Utility Consultants. |
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Small Climb After Recent Falls |
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Thursday, 05 August 2010 08:08 |
After the falls in the markets we've been seeing since the start of July, the last few days have seen both the gas and electricity markets increase a little. These rises can be considered normal behaviour for the markets at present, and is nothing which should cause undue alarm. Regular peaks and troughs are in keeping with historic patterns - during the climbs to the highest points of the markets, and the plummets to the lowest points, we have always seen little ups and downs.
Although not solely accredited to the recent movements, the fact that the Didcot Power station fell off-line last week after scheduled maintenance - suggesting it may be off-line for most of the summer - and the imminent reopening of the Transitgas pipeline in Switzerland which is expected to boost European demand for UK gas will have had an upward impact on forward prices. Conversely; Rough, the UK's largest gas storage facility, is due to close for maintenance in mid-September - freeing up gas to the markets that would otherwise be injected into the site.
As Utility Consultants we are continuously watching Utility Prices and issues that might affect them |
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Predictions of Energy Price Spike Emerge |
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Friday, 30 July 2010 08:02 |
Although we've seen a steady fall over the last fortnight from recent (admittedly not-that-high), high energy prices some business experts have predicted that there could very well be a price spike with oil prices potentially reaching $200 per barrel (currently sitting at $75 per barrel) as early as 2013. These claims were made after not merely studying current and historic price trends, but also considering other factors such as the energy usage of emerging countries, the remaining extractable fossil fuels and the planet's reliance on them, and the infrastructures in place to deliver the power to where it is needed. Despite Liquefied Natural Gas proving very successful, the slow uptake and modest output of renewable energy and the cost and waste implications associated with nuclear power, it seems that the dependence on gas and oil is not going to change much in the near future.
Another fossil fuel, shale oil, is touted as the next big thing but, despite plentiful reserves (it is predicted there is up to 3.3 trillion barrels available) extraction of this fuel peaks much quicker than traditional fuels and most of the associated recoverable gas is extracted in the first few years. This makes the economics less attractive that conventional extraction methods.
The predictions are contained in the report - Sustainable Energy Security: Strategic Risks and Opportunities for Business (by Lloyds and published by Chatham House) - which also reflects on the September 2000 fuel tax protests in Britain and the ensuing chaos as truckers and farmers created blockades at oil depots around the country - not something we look back on with much fondness. As petrol stations began to run dry and supermarket deliveries were halted, the general public resorted to panic buying and subsequent 'rationing' was enforced. While these predictions are merely that, predictions, we must expect an eventual increase in gas and oil prices, and the best possible advice is to be prepared.
As experts in Energy Procurement our Utility Consultants continually monitor utility prices and research the market in order to better predict future prices. This can be incorporated into budgets which we compile for clients - allowing them to be prepared and not have any nasty surprises should the markets shoot up. |
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North Sea Gas and Oil Exploration |
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Thursday, 22 July 2010 06:51 |
The North Sea is set to see new exploration over the coming years. The Government has recently reported an increase in license applications to record levels. Bids have recently been received for 356 areas for developing North Sea gas and oil. This news is a boost for North Sea gas and oil following a fall in investment due in part to the financial crisis.
It is estimated that there are about 18 million barrels of oil in the Bacchus oil field alone in the central North Sea area. |
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Prices Relax and Level Out |
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Wednesday, 21 July 2010 14:28 |
It is with a small sigh of relief that we can report that the energy markets have dropped over the past week. Although the upward trend was not unexpected - we can't enjoy rock-bottom prices all the time - at the start of July we hit a high electricity wholesale price of almost 5 p/kWh, and gas wholesale of 1.95 p/kWh - the highest prices since the market slump back in February 2009.
Oil prices have been fluctuating within $8 per barrel either side of the $80 mark since the start of the year and aren't following the behavior of the gas and electricity markets quite as closely as historically, but are still a very good guide for both of those markets.
Contributing to the recent fall in prices is increased LNG (Liquefied Natural Gas) storage and deliveries as more and more we embrace this new method of transporting and storing gas - also recent National Grid reports suggesting that the UK has comfortable amounts of surplus generation available for the coming winter.
Shared savings consultants enjoy falling prices because they can claim to be saving client's money by their own endeavors, whereas, it is actually the market that is providing the savings. Just a reminder that we work on an agreed fee basis - this means our fees are transparent and easily incorporated into your budgets. Nor do we take any payments from suppliers or their business partners which helps us remain completely impartial and have only our clients' best interests at heart. Compare this with brokers, who are paid commission by suppliers which is added to the charges made for energy in p/kWh, therefore being completely hidden to you the client. Our costs are lower than brokers and shared saving consultants and client’s know what it is costing.
In order to make the most of our expert Energy Consultants and Utility Consultants for your energy procurement needs, as well as bill validation, which is not offered by all consultancies (and certainly not by brokers!) and extra benefits such as tenant billing, just get in touch for a chat and see what we can do for you |
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BP Making Good Progress in the Gulf of Mexico |
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Wednesday, 14 July 2010 06:22 |
Live television coverage broadcast across the world has shown a new cap being placed on the leaking oil well in the Gulf of Mexico. BP is quoted as saying that its next step will be to carry out tests to ensure there are no other leaks from the well and that the cap itself does not leak under pressure although they are delaying them because both BP and US Coast Guard officials believe further analysis was needed before pressure testing could begin. These tests, including monitoring, could last from six hours to two days. Meanwhile, oil will still leak into the Gulf. The old cap, removed on Saturday, did not have a tight fit and allowed crude oil to escape.
It is also reported that one of two relief wells being drilled adjacent to the leaking well, is only about 100 feet from the leaking well. These relief wells are meant to intercept the oil from the leaking well and divert it away from the broken pipes causing the leaks and into new pipes. |
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Gas & Electricity Prices Continue to Rise |
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Wednesday, 07 July 2010 09:51 |
Unfortunately, we're continuing to see a rise in wholesale prices of both electricity and gas and they are now at the highest point since February 2009 when the market returned to 'normal' levels after the freak year that was 2008.
We have been seeing a recent steady upward climb with peaks and troughs leading to a market reminisce of the 2007 markets, but we're still in an excellent place to be securing long-term contracts. It is widely assumed that the lowest point is behind us for a while, but with the forecast increase in Liquefied Natural Gas (LNG) deliveries, the balmy summer and gradual recovery of the economy a repeat of the spike up to the wholesale prices of 9.0p/kWh in July 2008, as opposed to the current 4.8p/kWh, is unlikely, but unfortunately we can never say never.
In order to avoid any unexpected increases in the market and secure your energy contracts - get in touch now to take advantage of our energy procurement experts, and why not find out more about our full Utility Bureau Service which includes Bill Validation, Utility Consultancy and Tenant Billing amongst other benefits, and all at a fixed, agreed price. |
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