UK

The news of another excellent year for investment in the North Sea will come as a surprise only to those who do not understand the dynamic relationship between economics and technology.

The original predictions were that North Sea oil and gas – certainly in the UK sector – would be exhausted by 1990. A strict depletion policy in Norway might keep production running for a few more years. That was the received wisdom of the 1970s.

Now, 56 years after the first gas was produced at the West Sole field, the prospect for the whole province is for at least two more decades of production. Total output is down but there is a long tail. Resources which were once thought inaccessible are now being brought onstream thanks to advances in drilling and reservoir management technology. 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

A number of well-sourced reports over the past two days suggest that, as predicted, we are on the edge of a deal for the construction of new nuclear power stations in the UK.

The champagne corks however are not quite popping either in Whitehall or in Paris. Read more

There is absolutely no need for an energy shortage in the UK, but the indecision of policy makers is making serious problems over the next few years ever more likely. There is no shortage of supply – but the raw materials of the energy business – such as gas and coal, or for that matter wind – have to be converted into power to produce the electricity which is essential for a complex modern economy. If the power stations are not in place electricity can’t be produced. Read more

Shale gas drilling rig near Blackpool, in north-west England . Getty Images

I spent the holidays in Wales, dodging the odd shower, and contemplating the potential if someone could invent a technology that, short of massive hydro-power schemes, could convert rainfall into power. Wales would undoubtedly be the Saudi Arabia of rain power.

But Wales may not have to wait for new technology to become an energy producer again. The country looks set to be one of the main centres in the UK for the rapidly expanding shale gas business.

One of the most significant events of 2013 for the energy sector in the UK will be the publication of the next report on shale gas prospects across the country from the British Geological Survey. Well timed leaks of part of the report, which appeared just before the chancellor’s statement in December, have already suggested a significant increase in the resource base available near Blackpool. Read more