Gas

A Chinese miner unloads coal from a train

Those who keep talking down shale gas should read the views of Elizabeth Muller. Ms Muller does not run a shale gas company. She is co founder and executive Director of Berkeley Earth, an impeccably green non profit research group in California.

In her opinion, environmentalists in the US and elsewhere should be encouraging China to develop its shale gas resources. Those resources are huge – perhaps 50 per cent greater than those of the US, and have yet to be explored in detail. That process is just beginning and includes a number of international companies including Shell.

Ms Muller’s argument, which is unanswerable, is that any development of shale gas will offset the use of some coal. Shale gas is not carbon free but it is cleaner than coal which is China’s basic fuel now. And unless things can be changed radically, will be the dominant source of energy for the next several decades. If shale gas could back out some amount of China’s coal consumption, emissions could be materially reduced. Read more

Burbo Bank Wind Farm, River Mersey
Finally, the UK’s energy policy is taking shape after months of confusion. At its heart is a realisation that, while some decisions are urgent, others can wait. Time and timing matter. The approach is practical as well as political but it won’t suit everyone. And it leaves the biggest issue of all – climate change – unresolved. Read more

Tamar, a natural gas platform off IsraelThe Eastern Mediterranean is never dull. The whole area – land and sea – has been contested for centuries. And now, it turns out to have natural resources. Over the last decade, the area known as the Levant Basin has been identified as one of the world’s more interesting areas for exploration.

The first gas finds off the Israeli coast have led to a reappraisal not just of other areas along the coast from Egypt in the South to Turkey in the North, but also of the coastlines around the whole of the Mediterranean – from Albania to Spain. And the entry of Exxon and Rosneft into Lebanon opens up the prospect of another new exploration area and may provide a key to the development of the Eastern Mediterranean as a whole. Read more

Ed Davey, secretary of state for DECC

Ed Davey, secretary of state at DECC, outside his ministry

The UK’s Department of Energy and Climate Change is about to publish forecasts suggesting that gas prices could rise by up to 70 per cent over the next five years. This is scaremongering nonsense, and shows just how out of touch the Department is with the realities of the international energy market. Officials appear not to have consulted the industry or the traders. In reality the odds are that prices are just as likely to fall as to rise for three distinct reasons. Read more

How do short term warnings of gas supply shortages, and a 50 per cent spike in same day delivery costs, sit with the general acceptance across the energy sector and government that gas will – and should be – the next big source of supply for power generation ? Read more