Energy Crisis
Thought provoking piece in the Speccie. “How the Tories have fuelled Britain’s energy crisis” “Britain is caught in an energy crisis of the government’s own making. It is true that gas prices have spiked all over the world – but we’re suffering more than most. Energy suppliers are going out of business, thanks to the government’s price cap. Even fertiliser companies are going bust, with serious knock-on effects for the food industry: the British Meat Processors Association says shortages could hit within a fortnight. The trigger for this crisis has been the sudden surge in demand for gas as the global economy recovers from the Covid lockdowns. Gas prices have doubled in the United States, for example. In Britain, however, prices are five times higher. Why? Because America exploited fracking technology and capitalised on its huge inland gas reserves. Britain passed up the fracking opportunity, and we’re living with the consequences. While the government is right to phase out the burning of coal, it is also running down our gas infrastructure without providing a viable alternative. Every country has gas reserves in the event of widespread shortages. France has 14 weeks’ worth, Germany has eight weeks, Italy has 11 weeks, while Britain has just four days. That is virtually no buffer at all when a supply crisis strikes. Britain presents itself as a great example to other nations when it comes to handling energy policy and tackling climate change. Indeed, Boris Johnson has spent this week in New York asking why so few countries have followed Britain in making a legally binding commitment to hit net zero carbon emissions by 2050. The polite answer is that countries also have a duty to secure affordable energy for their citizens. When the COP26 summit convenes in Glasgow in a few weeks’ time, Britain could be in the middle of an energy crisis. The UK government might have to bail out almost-bankrupt fossil-fuel companies in a desperate attempt to keep the lights on. That would hardly be a great advertisement to the world. Much as the government would love to be able to deliver secure energy supplies and low prices in tandem with zero carbon emissions, the technology simply does not yet exist to make it possible. Of course it is right to try to reduce emissions to zero if we can. However, energy security and economic growth should be the first priorities. As things stand, they are treated as an afterthought. We have caught a glimpse of the results this week. The Prime Minister has high hopes for the COP26 summit but he should be prepared for other countries to see, in his energy policy, an example of what not to do.”
Russell Pearson ● 1858d38 Comments ● 1851d