Brent Crude hit a three-year high of $70 a barrel at the beginning of January, but there are questions about this rally’s resilience.  Higher prices threaten to unleash a new wave of US shale output in response.   “The higher the prices go, the harder the shale producers pump,” Tamas Varga at London-based broker PVM, said, adding “An overdue correction could be under way”.   The price of oil has been rising since late June 2017, supported by cuts in supply led by the OPEC ... Read more

One of the UK’s eight remaining coal power stations is expected to cease generating electricity at some point in 2018, the government has said as it laid out new rules that will force all the plants to close by 2025. Ministers will also retain emergency powers to suspend the phase-out in the case of an emergency shortfall in electricity supplies.   While three plants shut in 2016, and most are expected to halt operations by 2022, the last ones standing will be forced ... Read more

The Nuclear AMRC is leading two new R&D projects to address fundamental challenges in nuclear manufacturing. The ‘Inform’ and ‘Simple’ projects, backed by government funding of almost £2.5m, will investigate two contrasting approaches to producing large-scale nuclear components.   CTO of the Nuclear AMRC, professor Steve Jones explained: “Both projects aim to provide significant improvements to UK productivity, potentially cutting manufacturing time and cost by half for a variety of large nuclear components.   “By developing innovative approaches to the fundamental challenges of manufacturing, these ... Read more

The shale revolution in north America means the US is destined to become a net oil exporter within 10 years, for the first time since the 1950s. The International Energy Agency said it expected that American oil production between 2010 and 2025 would grow at a rate unparalleled by any country in history, with far-reaching consequences for the US and the world.  The last time the US exported more oil than it imported was 1953, and a ban on oil exports ... Read more

A new study has claimed that a global electricity network powered exclusively by renewables is possible by 2050, and will be cheaper than today’s system.   The report was carried out by Finland’s Lappeenranta University of Technology (LUT) and the Energy Watch Group (EWG), an international non-profit that includes scientists and politicians. Presenting their results on the sidelines of the COP23 climate conference in Bonn, the researchers said that existing renewables potential, coupled with storage, could meet global demand by the middle of ... Read more

The Government’s “outdated” policy on onshore wind could cost the UK around £1bn over the next four or five years, according to the Energy and Climate Intelligence Unit (EClU).   A new report published from the non-profit claims that 1GW of new onshore wind farms would be £30m cheaper a year than offshore wind and £100m less than new nuclear or biomass plants.   The ECIU does insist the UK’s “effective ban” on support for onshore wind is blocking development of the cheapest new electricity ... Read more

Opec expects stronger demand for its crude oil next year due to stronger consumption growth and lower estimates for supply from outside the cartel, as prices near $50 a barrel boost driving and crimp output.   The cartel’s monthly market report said its in-house analysts see demand for Opec’s oil reaching 33.1m barrels a day in 2018, up by roughly 200,000 barrels per day from last month’s forecast with the increase largely split between stronger demand and lower estimates of non-Opec supply.   The increase ... Read more

In a claimed UK first, energy supplier EON has completed the installation of a 10MW energy storage system that will be used to help smooth the flow of power to and from the grid.   The 10 megawatt (MW) Lithium-Ion battery, which is housed in four 40ft long shipping containers, has the same power as roughly 100 family cars and holds the same amount of energy as 500,000 mobile phone batteries. It has been Installed at a 30MW renewable energy plant that converts ... Read more

North Sea oil and gas producers have pulled out of the “death spiral” that had threatened to send the basin into precipitous decline according to industry leaders.   However, exploration remains at its lowest level since the 1970s and the UK faces a battle to compete against lower cost oil and gas elsewhere in the world.   The chief executives of Royal Dutch shell and BP, the UK’s largest oil groups and pioneers of the North Sea industry, both said they were optimistic about the ... Read more

Chevron is preparing to affirm its commitment to the North Sea, restarting a bidding process to help unlock the region’s single biggest undeveloped field and considering extending the life of one of its key assets in UK waters.   The US oil major is looking again at developing the Rosebank oil and gas field north-west of the Shetland Islands, which it holds a majority stake. It was discovered in 2004 but higher costs owing to the deep water and hostile weather have deterred ... Read more