Gas supply crunch

[clv101]

I've heard several people are asking why the price of fuel is shooting up but a barrel of oil is not much more than a ton.

Two reasons, firstly oil price in pounds or euros is record high, way above the 2008 peak. Secondly shortage of the 'right' kind of refinery capacity after sanctions have mucked up oil market.

[Catweazle]

Is it possible that an unscrupulous government could use rocketing fuel prices to increase the GDP figure and claim our economy is doing better than is actually the case ?

[clv101]

No, as money spent on fuel can't be spent on other stuff. Spending on other stuff generates more GDP as there is less tax/duty.

[adam2]

Significant increase in natural gas prices over the last couple of days. UK prices increased from about 150 pence a therm to about 250 pence a therm.

Russia has significantly reduced natural gas supplies to Germany, allegedly for "technical reasons" Supplies to Italy also reduced. TPTB in Germany have expressed confidence in their ability to obtain supplies from elsewhere, but that would tend to drive prices higher.

[adam2]

"Prepare for Russia to turn off natural gas supplies to Europe this winter" Says IEA boss.
https://www.bbc.co.uk/news/science-environment-61899509

[adam2]

Germany takes next step towards rationing of natural gas.
This is the SECOND stage of a three step plan, with actual rationing being the final step.
https://www.bbc.co.uk/news/business-61908998

[PS_RalphW]

UK introduces legal measures to allow the banning of NG pipeline supplies to Europe in a supply emergency.

[adam2]

UK introduces legal measures to allow the banning of NG pipeline supplies to Europe in a supply emergency.

Sounds a good idea. We might need something from them and should therefore assist with both gas and electricity supplies as far as we can, but not during any serious emergency.

[PS_RalphW]

Gas up 20% today, to 288, possibly as a result of a (failed) attack by drones on Isreali gas rigs in the Mediterranean.

[adam2]

Such high prices are of great concern. Although some way below the "highest ever" prices of a few months ago, the present price is undoubetedly the highest ever in the Summer.
If prices reach 280 pence a therm in the summer, what may be expected next winter ?

Whilst there is little that the UK can do about international prices, we should be rapidly expanding wind power, PV and other renewables, thereby reducing the need for hugely expensive gas.
Renewably energy schemes that were rejected as being uneconomic at last years gas and electricity prices, may now become worthwhile.

Even Hinkley C, hugely criticised for excessive sounding price of electricity therefrom is now starting to look like a bargain.

[adam2]

Russian gas supplies to Germany via Nordstream 1 pipeline halted due to "maintenance work"

https://www.bbc.co.uk/news/world-europe-62121702

Wont DIRECTLY affect the UK, but will add to a general tightness of supply and tend to increase prices.

Rather to my surprise, the natural gas price has fallen, I would have expected an increase in view of the above. Gas remains very expensive, but LESS expensive than it was earlier today on Friday.

[adam2]

Energy rationing "can not be ruled out" says Shell boss.
https://www.bbc.co.uk/news/business-62167060

[kenneal - lagger]

I'd better bite the bullet and fill up my Discovery with diesel. A full tank should last well over a month but at 90 litres it will cost an arm and a leg!

[adam2]

EU calls for members to cut gas use in case Russia restricts supplies.
https://www.bbc.co.uk/news/business-62230201

[Potemkin Villager]

"....Governments should also decide the order in which they would force industries to shut down in the event of a supply emergency.

Households are classed as "protected consumers" under EU rules and would be shielded from such curbs....."

So that's alright then?

" Fatih Birol, executive director of the IEA, said that despite efforts to reduce reliance on Russian gas, it hasn't been enough to prevent Europe "finding itself in an incredibly precarious position today", adding that the next few months were "critical"."

I'm inclined to put more faith in Faith than the EU or national governments. Of course in this critical period
our dear politicians all head off on their (well deserved of course) holliers!