energy

Are oil prices about to fall further?

According to the International Energy Agency there is currently a massive amount of oversupply in the market, which cannot possibly be absorbed. This will then push the oil price lower, possibly lower that what was seen in January when prices fell to their lowest for 5 years.

The oversupply is being generated by OPEC refusing to cut its supply in an attempt to gain extra market share. Another contributing factor has been the US shale oil boom, which has revolutionised the way the US drills for oil, allowing them to up their volume by a considerable amount.

UK Government to continue supporting North Sea oil and gas

The Government has said it will continue to support the North Sea oil and gas industry by establishing a governing body that will be in charge of regulation to help with recover and asset stewardship. The industry had begun to struggle when the oil prices had crashed towards the back end of 2014 and beginning of 2015, and has only recently started to recover. However, the Government do not believe the recovery is picking up enough pace, which is why they will create the Oil and Gas Authority.

Gas and electricity contracts at new lows

Annual gas contracts fell in June after they had initially risen to 47.0p/th due to worries over a production cap in Groningen, which limited the supply. Groningen is Europe’s largest gas field and has imposed an output cap of 30bcm after an EU court ruling. However, this rise was then counter balanced by strong Russian and LNG supplies, eventually pushing down prices. The Greek crisis has also had an effect on gas prices, with the euro weakening against the pound, imports have been a lot cheaper.

EU seeks Chinese investment to boost funding for sustainability

A stronger relationship with China must be a priority for the EU if it is to boost its funding in sustainability. The President of the European Committee of Regions stated that if Europe is to get the funding it requires to make urban areas more sustainable, it must look to China for investment.

The President reiterated claims he has already made that it is important for city pairing and partnerships between regions in energy efficiency. He believes that city’s and regions working together to meet energy efficiency targets works a lot better that city’s going it alone.

Could fracking pull down your house price?

A recent government report has reviled that a fracking site within a mile of your home could reduce the value of your property. Fracking or Hydraulic Fracturing is the process of using pressurised liquid to fracture the rocks deep beneath the ground, to allow any natural resources such as gas and oil to move more freely.

UK power prices fall due to hot weather

The UK’s day-ahead prices fell this week due to much higher temperatures than seasonal norms, which increased the amount of electricity generated by solar power. This also caused a drop in peak power demand, which pushed prices even lower. The wholesale cost of electricity is now fast approaching the lows seen in January after a downward trend over the last couple of months.

Energy Secretary confirms power capacity auction

The UK’s Energy Secretary Amber Rudd has confirmed that the government will again hold an auction for power capacity delivery for 2019-2020. This will be the second time this has happened after the Conservative-Lib Dem coalition did the same last year.

The announcement was made after a letter was sent to the national grid by Amber Rudd, outlining the governments plans for the auction. The auction parameters will be published closer to the auction date on the 1st of September.

EU needs more powers to ensure it meets the 27% renewable energy target

The European Wind Energy Association (EWEA) has claimed that the European Commission needs more powers to ensure that its members meet the 27% renewable energy pledge by 2030. The paper released by EWEA claimed that the European Commission must be hard on those states that were not pulling their own weight, and instead expected other countries to go beyond the target and make up for their short fall.

China are making progress with greenhouse gases

China is close to hitting its peak emission levels and will start to see a decline within the next 10 years. China, who are the world biggest investor in solar and wind power, have a particular vulnerability to an increase in global temperatures.

Gas supply set to greatly outstretch demand

Unexplained low demand for gas in Asia is set to cause global oversupply which will push prices down to levels not seen in over a decade. Prices of gas in Asia are usually very closely linked to oil prices, which dropped by almost 50% in the final two quarters of 2014. When the oil prices fell, the gas prices followed suit which prompted experts to predict increased demand due to the low prices, however, the demand has not picked up.

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