Energy and Utility Management Consultants

Prices Remain Steady - Nuclear Receives Renewed Backing

November 2011

 

Further to well covered recent news relating the huge profits of gas and oil companies, British Gas have agreed a deal with Statoil to buy some 1bn worth of Norwegian North Sea assets, and have pledged to look into the possibility of collaborating on further explorations in the area. The 15 year deal is enough to meet some 5% of the UK annual demand. Significant indeed, but far from the volumes that would be required to guarantee supply for the long term. The deal shows the commitment of British Gas to secure energy for the long-term, and as a partnership they will no doubt be a force to be reckoned with. Elsewhere, following the Government's recent decision to halve the premiums paid for any solar powered generation that is returned to the grid through feed in tariffs (FiT's), the coalition have again backed investment in nuclear power stating that it is vital to continue investment in the controversial energy source and to push forward technological advances to keep the UK's energy options open. It is a move sure to promote responses from environmental campaigners - slashing the benefits of renewable energy and promoting more 'potentially dangerous' means of generation was always going to be a hot topic - but nuclear energy can be an inexhaustible form of generation, so to overlook its importance and long term security would be churlish. With regard to current wholesale market prices of natural gas, brent crude oil and electricity, the recent trend has been a slowly falling one. Our hopes are that this continues into the New Year at least and ideally beyond and into the spring. But, as we're all too aware, the energy markets are extremely volatile and any number of events could result in an upward movement. Events in the Eurozone and more locally with the UK economy could impact markets in either direction so we will be keeping a watchful eye and will advise our clients accordingly. Be as best informed as possible by appointing Clifford Talbot as your chosen Utility Consultant and let us take care of your business energy needs through our well established and respected Utility Bureau Service - you're sure to be impressed at how much time and money we can save you.

 

 

 

 

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