business gas

Is the UK's oil and gas industry turning a corner?

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.

Why you should be looking at your next energy contract now

You still have between 6 months and 12 months remaining on your current contract and your next contract negotiations are some time away, there is no reason to be looking at the contracts now, right? Not exactly, when looking at the wholesale gas and electricity markets the prices fluctuate on a daily basis and therefore it is when you sign the contract that is  important when trying to minimise costs.

Gazprom stops gas exports to Ukraine

Russian gas giant Gazprom has announced they have stopped all exports of gas to Ukraine because of Ukraine using up all of the gas they had paid for. However, Ukraine say that it was them who stopped the flow of gas from Russia because they could purchase it cheaper from other sources such as Europe.

Gas system under supplied

npower have reported in  their daily market report that the gas system in the UK is ‘slightly’ undersupplied and demand is higher than the seasonal norm. It is forecast that the linepack will be 6mcm short.

The UK has ramped up storage withdrawals to combat the higher demand and exports to Belgium via the IUK pipeline have been reduced to 7mcm a day, down from 17mcm a day. It is believed that the combination of these two actions will be enough to combat the slight undersupply and not affect prices.

Winter energy supplies secure, says National Grid

This years National Grid Winter Outlook has revealed that supplies will be secure throughout the winter. The Winter Outlook is a report that is regarded as a key indicator for the UK’s energy supply and if there was any concerns regarding supply, it would show up in the report.

New well to be drilled at York Gas Field

A fourth well is to be drilled at York Gas Field by Centrica, who have invested £80 million to extract gas from the field till 2020. The additional well will allow Centrica to access an additional 20 billion cubic feet of gas, which is enough to heat half a million homes throughout the year.

The EU and Ukraine agree a deal with Russia for gas

An agreement has been reached by the EU, Ukraine and Russia over the supply of natural gas throughout the Winter. It was thought the tensions between Ukraine and Russia would make reaching an agreement difficult, leading to worries of a natural gas shortage throughout Eastern Europe. The conflict between Ukraine and pro Russian soldiers in the east of the country has killed almost 8,000 people since it began in 2014.

Gas demand lower than expected

Gas demand has been reported as lower than expected for this time of year, although prices have risen throughout the week. Oil prices have started to increase again over the past week, rising from $43 per barrel to just over $51 per barrel.

Electricity prices have also followed gas and oil rising sharply this week. A power outage at the Sleipner Platform caused it to shutdown this week which stopped Norwegian LNG imports. This is believed to have contributed to the rise in gas and electric prices.

EU holds talks on reducing dependency on Russian gas

After holding talks on how the EU can move away from being dependant on Russian gas it has been revealed that a decision was not made. MEP’s from Eastern, Western and Central Europe had met to discuss how to better coordinate energy policy.

UK Government gives the go ahead for £3 billion North Sea gas field

A new gas project in the North Sea worth £3 billion  has been given the go ahead by the UK Oil & Gas Authority (OGA). The OGA was launched in April 2015 as one of the first moves by the new conservative government to act as the governing body to the North Sea oil and gas industry and assist with economic recovery.

The Culzean field is the biggest discovery made in the North Sea for a decade and holds around a quarter of a billion barrels of oil equivalent. It is expected that it will produce enough gas to meet 5% of the UK’s needs by the time it is fully operational.

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