Gas

Articles, comment and analysis about the gas market

Real or not – gas market manipulation could be the start of a worrying period for the Big 6

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November 13, 2012
Gas Flame

The FSA and Ofgem have launched an investigation into the alleged manipulation of the NBP wholesale gas price by one or more of the UK Big 6 following claims from a whistleblower published in the media. All have categorically stated that they take no part in market manipulation.

The UK public have up-until this point been fairly acquiescent as their energy bills have risen and complaints have been muted rather than expressly vocal. However, the Big Six should not take that as a sign that there is no discontent as a rejuvenated Ofgem/FSA along with mounting political pressure and upcoming energy market reforms place considerable downside risk upon them.


Investigation into alleged manipulation of gas prices

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November 12, 2012
BBC Logo

Allegations of manipulation of UK wholesale gas prices are being investigated by the Financial Services Authority (FSA) and Ofgem. The investigations by the FSA, the UK’s financial watchdog, and energy regulator Ofgem are said to follow claims by a whistleblower. Energy Secretary Edward Davey said he was “extremely concerned about the allegations [and that] the government takes alleged abuse in our markets very seriously”

The cause of the trading pattern, which involved a series of deals done below the prevailing market trend, has not yet been established.


How emissions, gas and existing assets are impacted by the Electricity Market Reform

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September 28, 2012
Power emissions from Power Station

The package of reforms outlined in the Electricity Market Reform will set the framework for some of the most significant changes in the UK market for many years. Implementation requires fundamental changes in many parts of the existing arrangements and the exact details of how these will be enacted are currently under discussion.

The reforms are wide ranging and therefore I split them over a number of posts. The first – this post – considers the reforms as they relate to emissions.


Chancellor unveils tax break for older North Sea oil and gas fields

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September 7, 2012

The allowance for “brown field” areas will shield some income from the supplementary charge on their profits. The chancellor said the measure would give companies the incentive to “get the most out of” older fields. Industry body Oil and Gas UK told BBC Scotland that the tax breaks could generate a further £2bn of investment.


An analysis of Coal generation in the UK and interaction with the Gas market

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July 29, 2012
Illustration of the cyclical seasonality in gas generation

This report examines the relationship between the physical coal and gas markets in the UK from 2000 to 2009 and investigates the hypothesis that these markets exhibit marked correlations.

It found a strong relationship between the two markets in some aspects, the growing influence of Liquefied Natural Gas and a suggestion of rapid market evolution in both Coal and Gas.


Why the price of Gas is linked to Oil

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July 24, 2012
natural gas refinery

Discussing the historical pricing and indexing of Gas to Oil, the contract terms that back them and the potential outlook given the emergence of shale gas. The post also examines reasons why long term fixed/oil indexed contracts may remain in the European sphere.


European gas: Pipeline pressures

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November 23, 2011
gas-pipeline-construction

No one likes getting a gas bill, but Europe’s biggest utilities are especially upset over the sums they must pay gas producers, in particular Russia’s state-backed giant, Gazprom. Some are trying to cut those costs; but with little in the way of leverage over producers their chances of success look slender.


UK Govt refuses to ban shale gas ‘fracking’

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July 26, 2011
Shale Gas Drilling in North America

The UK government has welcomed new developments in “unconventional” gas resources. It is largely a let’s-wait-and-see response, which acknowledges the economic, environmental and security benefits of shale gas. Calls from environmentalist campaigners to freeze exploration in the UK have been given the bum’s rush.