Gas and oil price increase as North Sea supplies dwindle
A report has just come out that examines the link between crude oil prices and wholesale gas prices in the UK. The conclusions of the report are that the link between the two will
get stronger over the coming years as the output from the North Sea declines and Britain become more dependent on foreign imports. In 2004 the UK was totally self sufficient but by 2010 half the gas we use will be imported.
“It looks like the era of cheap energy is over” said the leader of an industry trade association, and most people involved in the industry think this is so.
The problem is that we are now exposed to prices of liquefied natural gas on the international markets. Here prices rise in sympathy with that of with oil. We also have to bid against
other European countries for limited supplies of gas through pipelines or tanker loads of liquefied gas.
Small and Medium sized businesses (SME”s) will particularly notice the prices rises as they consume more gas or oil than domestic users but often lack the clout of larger concerns who can negotiate better prices.
SME”s can often save on energy bills the most by installing a HeatingSave control system to replace their existing central heating time clock. This is because many of these currently use a 24 hour heating clock with heating still on at weekends when many of them are not working. Even if they have installed a 7-day clock, this will still not handle bank holidays, which with shutdowns over Christmas can represent around 3%+ of the heating fuel used.