A potential £52.6 billion worth of oil could be sitting under Gatwick and other areas of the South East according to a new report by UK Oil & Gas. The company who plans to extract oil from the Gatwick area have said that they believe there is a considerable amount of oil in the area, which will be a huge boost to the region.
A meeting between oil producing nations over the weekend to discuss a possible output freeze has ended without a deal. It was hoped that this meeting would finally see OPEC cut its production and force the price of oil up. However, the familiar issue of Saudi Arabia not wanting to loose market share to Iran forced the meeting to end without a deal being made.
The UK Government has said that they will be streamlining the energy tax landscape for businesses, which will include simplifying policy and regulation. When the Conservative Government was elected in 2015 they believed that the business energy tax landscape had become over complicated and had became a burden for businesses. Energy efficiency policy was also criticised with a number of schemes being very similar, using up a lot of administrative time within businesses.
The Department for Energy and Climate Change has revealed that almost 25% of all electricity generated in the UK in 2015 came from renewable energy. This sees renewable energy now account for more of the UK’s electricity generation than coal, which fell to just 23%. Sources such as nuclear rose to 21% while gas accounted for 30%.
Energy Secretary Amber Rudd will say that leaving the EU will cause a massive increase in energy prices. She will be citing a report by the National Grid which outlined what would happen if the UK was to leave the EU and loose access to the Internal Energy Market (IEM).
Energy industry stakeholders have stated that a lack of direction is costing the industry investment and also resulting in lost opportunities. The Government has said that they will address this and consult with experts from within the industry.
The UK Government have said that they will be introducing laws to cut carbon emissions to zero, after they had promised at the COP21 conference in December to reduce carbon emissions by at least 80% by 2050. However, critics have said that the UK are failing to hit current targets which are much lower.
With oil prices rising sharply over the past couple of weeks, many are wondering if the price has bottomed out. In early February the price of Brent Crude Oil hit $28 per barrel, however talks of an output freeze between the Saudis and Russia has fuelled a sharp recovery, with prices opening on Monday the 14th of March at just over $40 per barrel.
It has been revealed that the UK could be saving up to £8 billion a year on energy if it was to implement nationwide smart energy. The National Infrastructure Commission (NIC) laid our their vision of the future of the UK’s electricity network, which included more links to mainland Europe and a much larger capacity to store energy.
For the western world, nuclear power has been around for decades, and in Europe the amount of planned new nuclear plants is in decline. France was once leading the way with nuclear power, but now even they are reducing their dependency on nuclear. Countries such as Italy and Spain have been forced by public opinion to abandon any plans to expand their nuclear industry and Germany will phases out nuclear completely by 2022, opting for renewable energy to fill in the gap.
Energy giant Scottish Power is planning on doubling its energy storage facilities because of a huge increase in demand due to renewable energy. As the amount of energy coming from renewables such as wind power increases, the demand for electricity storage also increases. This is due to wind turbines creating the same amount of electricity at night as they do during the day, however, electricity demand is much higher during the day.
A new study has revealed that electric vehicles (EV’s) will represent around 35% of new car sales around the world by 2040. This comes on the same day a separate report revealed that 80% of Londoners said they would consider going green.
The International Energy Agency (IEA) has released its latest medium term oil market report, issuing a warning about supply security. The IEA expects the oil price to rebalance and recover throughout 2017, where we will start to see prices increase to levels we had seen a few years ago.
OPEC oil ministers have travelled to Iran to discuss a possible production freeze between OPEC, Russia, Iran and the US. OPEC hope that the production freeze would push prices higher after they have been lingering around the $30 per barrel mark.
More than half of new energy added to the United States electricity grid was from renewable energy sources, with the amount of new electricity generated from fossil fuels falling. 68% of new energy added to the grid came from renewable energy sources, which has now been the biggest source of new electricity generation for two year running.
After Laggan Gas Field was discovered in the 1980’s, it has taken 30 year to get to ‘first gas’. This is due to deep water gas drilling in the North Sea proving to be a lot more difficult both technically and financially. However, now that first gas has reached the shores could a struggling UK oil and gas industry be turning a corner.
Late on Thursday afternoon there was an announcement from the Russian oil minister that they will be meeting with OPEC in early February to discuss a 5% cut in oil production. The market has been flooded with over supply, which has caused the oil price to fall as low at $27 a barrel, however, this announcement caused a spike in prices with oil hitting $36 a barrel briefly before trading closed.
The UK Government announced in 2015 that it will be closing its remaining coal power stations in favour for cleaner gas power stations by 2025. This was a popular decision, with coal power stations accounting for a very large part of the UKs carbon emissions. However The Institute of Mechanical Engineers (IMechE) believe that the plans have been rushed and are currently unrealistic.
The Environment Agency has confirmed that more than 3,000 organisations that are required to participate in the Energy Saving Opportunity Scheme (ESOS) are yet to notify them that they are intending to comply. The original deadline of the 5th of December was extended till the end of January 2016 due to a large amount of companies that were expected to miss the deadline.
Oil prices on Monday morning fell to their lowest since 2003 as Western sanctions on Iran were lifted at the weekend. The price briefly fell to $27.67 a barrel before recovering slightly due to fears over more oversupply on the market.