Business News

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.