Amber Rudd, home secretary, speaking at the Conservative party conference

Amber Rudd, home secretary, speaking at the Conservative party conference  © Getty Images

A few weeks ago I argued that Brexit would have very little impact on the energy sector in the UK or Europe. Energy prices are decided by the international market, the energy mix has always been dictated by national governments and there is no apparent appetite for Britain to diverge from the climate policies and emissions targets set by the EU with its full support. All that remains true, but circumstances have changed. A new factor has emerged in the Brexit debate that could do great damage to the country’s sector.

The issue was expressed in chilling terms in two speeches at the Tory party conference this month. Theresa May, prime minister, said: “If you believe you’re a citizen of the world, you’re a citizen of nowhere. You don’t understand what the very word “citizenship’ means”.

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It is easy to say ‘be a vegan’ while you yourself tuck into a bacon sandwich, says Nick Butler Read more

Boom Goes Bust: Texas Oil Industry Hurt By Plunging Oil Prices

A worker washes a truck used to carry sand for fracking in Odessa, Texas  © Getty Images

If you live in Europe you could be forgiven for thinking that the shale revolution is strictly an American phenomenon. Casual readers could also easily get the idea that low oil and gas prices are driving down US production of shale gas and tight oil and that even there the revolution is over. All these impressions are mistaken.

Shale development in Europe is virtually non-existent. Fracking is banned in France and discouraged in Germany. In Poland, early results have been disappointing while in the UK, thanks to mistakes by the government and the industry, no drilling has taken place for several years. Starting operations in Balcome — a wealthy and vocal community with no economic imperative to give up its peaceful lifestyle was a mistake. Creating great expectations without putting in place either proper incentives or a clear regulatory framework was a serious policy error. There is talk of a few wells being drilled this year but probably only if local objections can be overridden by edicts from Whitehall — a crass process somewhat at odds with the government’s rhetoric about devolving power to local communities. The approach is not likely to win over hearts and minds and may well prove unenforceable in a number of areas. Read more


President Vladimir Putin  © Getty Images

Of all those damaged by the oil price collapse, few are in a more difficult position than Russia. High prices have sustained the Russian economy since Vladimir Putin came to power in 1999. Hydrocarbons provide the overwhelming proportion of export revenue. Now something radical may be needed to avert economic collapse and political dissent.

Privatisation is back on the agenda of the international oil industry. Although the prospect of the Saudis selling a share in Aramco has been tantalisingly floated by the Saudi deputy crown prince Mohammed bin Salman in his interview with the Economist two weeks ago, there are other potential sales that are likely to be completed sooner. The most intriguing is the possibility that the Russian government will sell off another slice of its 69.5 per cent holding in Rosneft. Read more

Over the years, many governments, rivals, oligarchs and commentators have underestimated Vladimir Putin – often to their cost. When he came to power back in 1999, he was seen as simply a poodle, a temporary, technocratic figure as Mr Yeltsin’s prime minister with no political presence of his own. Some 13 years later, he is one of the longest serving leaders in the world.

Russia is no democratic paradise but by and large Mr Putin has avoided open conflicts and had begun to re-establish a position for Russia in the world – not quite the superpower it once was but rather as a country with a strong government that no one can afford to ignore. Read more