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Cheaper Natural Gas

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I can recall sometime in the past that when wholesale Oil prices dropped so did wholesale gas prices.

With the big fall in oil, I wonder( and I guess this is wishful thinking) whether gas may drop as well.

Comments

  • Cardew
    Cardew Posts: 29,060 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    When the oil price drops there are a number of factors that mean that the cost of natural gas does not also drop.


    However when oil prices rise there are a number of different factors that entail natural gas costs rising.


    It is called economics by the energy industry;)
  • You also have to remember one of our party leaders with his eye on no10 wants a 2yr price freeze. If you were an energy company possibly faced with this prospect of not being able to increase your prices for that length of time would you drop your prices months before the freeze?

    I know what my answer would be ;)
  • C_Mababejive
    C_Mababejive Posts: 11,668 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    There is no way that a Labour party or any other party will be able to control the economics of energy supply in private industry. A large proportion of the UK gas supply is imported. Will he tell Putin and the Algerians how much he will pay for their gas? Its simply pre election bluster.
    As an example, the South Hook LNG importation terminal now flows upto 25% of the UKs gas requirements all brought here in liquid form from Qatar.

    Will Labour tell the Qatar source how much to charge for gas? Will they negotiate special low rates for the huge LNG supertankers which cruse to the UK regularly to drop off these mega volumes of gas in South Wales?

    http://en.wikipedia.org/wiki/South_Hook_LNG_terminal

    Will Labour tell the operators and gas suppliers of the 720 mile subsea Langeled pipeline linking Norwegian gas fields with the UK how much to charge?

    http://en.wikipedia.org/wiki/Langeled_pipeline

    The answer is no. The halcyon days of High Speed North Sea Gas are over. Thats why the price will always go up.
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • callum9999
    callum9999 Posts: 4,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    There is no way that a Labour party or any other party will be able to control the economics of energy supply in private industry. A large proportion of the UK gas supply is imported. Will he tell Putin and the Algerians how much he will pay for their gas? Its simply pre election bluster.
    As an example, the South Hook LNG importation terminal now flows upto 25% of the UKs gas requirements all brought here in liquid form from Qatar.

    Will Labour tell the Qatar source how much to charge for gas? Will they negotiate special low rates for the huge LNG supertankers which cruse to the UK regularly to drop off these mega volumes of gas in South Wales?

    http://en.wikipedia.org/wiki/South_Hook_LNG_terminal

    Will Labour tell the operators and gas suppliers of the 720 mile subsea Langeled pipeline linking Norwegian gas fields with the UK how much to charge?

    http://en.wikipedia.org/wiki/Langeled_pipeline

    The answer is no. The halcyon days of High Speed North Sea Gas are over. Thats why the price will always go up.

    Don't be daft, of course they can. He isn't freezing the price that the energy companies can buy at, just the price they can sell at.

    The actual question that needs to be answered is whether it makes economic sense for them to do so. I'd personally say no, for the reasons you described.
  • robin58
    robin58 Posts: 2,802 Forumite
    I can recall sometime in the past that when wholesale Oil prices dropped so did wholesale gas prices.

    With the big fall in oil, I wonder( and I guess this is wishful thinking) whether gas may drop as well.


    I saw pigs fly today. More possible than a gas price reduction.
    The more I live, the more I learn.
    The more I learn, the more I grow.
    The more I grow, the more I see.
    The more I see, the more I know.
    The more I know, the more I see,
    How little I know.!! ;)
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