More of our interesting times in the UK. 

Ofgem warns of power shortage, ran the headlines on October 5th, which is old news but has been strangely quiet over recent years. Ofgem now predict capacity margins down from 14% to 4% in the winter of 2015-16, all adding pressure to the EMR legislation going through.

The UKs energy market is Fast, cheap and out of control said the Economist, though the article added little light to the problems.

Leading businesses wrote to the Chancellor, calling for a 2030 target for complete decarbonisation of electricity (which is what the Committee on Climate Change has been calling for for years). 50 large businesses including Asda, Sky and Pepsi wrote to Osborne under the aegis of the Aldersgate Group, a business membership organisation.

"Go Green or we quit Britain" said leading energy firms in yet another letter to the Chancellor, this one from Siemens, Alsthom, Mitsubishi, Areva, Doosan, Gamesa and Vestas, "threatening to withdraw plans for hundreds of millions of pounds of future investment.

Im still chuckling about Owen Paterson's comments - or am I sobbing? Wind and nuclear subsidies create a Soviet-style system, he said, whereas shale gas is god-given! This man is supposed to be Secretary of State for the Environment. 


Meanwhile, Osborne raised the prospect of tax breaks for shale gas, and the twitterverse enjoyed a series of tweets from Michael Liebreich stating the clear argument that, as all industry experts in Europe have said, shale gas is not going to change the game here (see below)

Finally, The story of plenty is yet to be realised, said the FT. The current narrative is that of plenty replacing scarcity, and yet there are some inconvenient truths, said the paper. "Yet there is one troubling wrinkle in this narrative of abundance: the price of oil. The shale boom might have driven US natural gas prices down to 10-year lows, but despite the rise in North American oil production, prices remain high. It is no wonder, considering the bulk of the world’s crude continues to come from the volatile Middle East." 

Sadad al-Husseini, a former head of exploration at Saudi Aramco, says “It isn’t an oil glut by 2020 that is keeping oil prices as high as they are. It is the reality that the oil sector has been pushed to the limit of its capabilities and that this difficult challenge will dominate energy markets for the rest of the decade.”"

Here are those Liebreich tweets:


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