Energy security is a mantra often repeated by politicians but those who mindless call for energy security fail to understand just how complex the process of providing energy to a nation has become and just how many different hands are on the valves, switches or taps that can turn off or on the supplies, according to their policy of self-betterment and greed.
Our nation in the United Kingdom depends now on imported natural gas for much of its energy. The politicians’ solution to this risk is to push fracking as a means of enabling us to gain more of our natural gas from our own nation, rather than from Russia, Norway and Qatar. However, the natural gas price is closely aligned to the oil price and without doubt the oil price is being artificially driven down, in order to enhance the market share and the dependence on the traditional oil producing companies. As a result much of the North sea’s oil installations are being placed in mothballs and some fields are being decommissioned altogether.
You can corner a market by driving prices down, seeing off competition and then regain what you might have lost and make a handsome profit when you have the market in your pocket. Eventually and at great cost, some of your competition will grab a small market share but for the most part you will enjoy the ill gotten fruits of a monopoly.
There will inevitably be a knock on effect on the natural gas price which will make many fracking operations uneconomic.
Fuel prices being driven down will make us less energy secure and more dependent on foreign fuel for our energy.
China is investing in the UK’s nuclear industry, to the extent of a reported substantial stake in the £24 billion project at Hinkley Point C in partnership with the French owned EDF, and is also reported to be acquiring a significant slice of three UK’s wind farms for £100 billion.
These investments will not make our nation more energy secure.
Filed under: climate change | Tagged: China, China investment in nucear energy, energy, energy security, France, monopoly in energy and oil, natural gas and oil prices, nuclear, reason for oil price decline |