In todays news...

[Count Steer]

Like I said, I have a bee in my bonnet with these guys and landlords, etc, making unreasonable amounts of profit from fundamental necessities of life. I wouldn't nationalise it, but I'd regulate it a lot better than it is now.

Ah regulators, bless 'em. After I went over to the dark side I had the pleasure of going to the rather shabby offices of Ofgas to meet the 'regulator'. It was Clare Spottiswoode at the time. I came away with the distinct impression that the job was a political 'grace and favour' position and knowledge, competence and independence were not on the job description. In contrast (and for good or ill depending on your view of politics/EU) the people I met in Brussels and Paris were a bit more 'Well, yes, lets have a bit of competition and loosen the market a bit but let's not go wild eh mes amis?'

I quite miss it all sometimes.

[Mussels]

You think nobody should have insurance then?

I'm obviously being simplistic but I'm sure there is a difference between an 'insurance' and a gamble that has the potential to offset loss.

People producing stuff want to fix their price at a level they know will cover their costs and give a little profit, they will fix the price with someone who agrees to buy it at a set price and they carry the risk hoping the price rises, if the producer wants to pay a bit more they can buy a derivative which means they reap the benefit of high prices but have someone covering their losses if prices drop a lot.
Very similar to insurance where someone else carries the risk, neither is infallible as underwriters found out with covid and business continuity cover.

[Yorick]

I see that gas prices are on the rise in the UK.
But just been Googling and North Sea gas is still producing.

Have I missed summat?

[Mussels]

I see that gas prices are on the rise in the UK.
But just been Googling and North Sea gas is still producing.

Have I missed summat?

Gas prices are rising globally, something to do with Russia blackmailing Germany over a pipeline.

[Yorick]

I see that gas prices are on the rise in the UK.
But just been Googling and North Sea gas is still producing.

Have I missed summat?

Gas prices are rising globally, something to do with Russia blackmailing Germany over a pipeline.

If the UK has it's own supply, how can other countries affect it?

[gremlin]

There's a few things at play, the Russians being one (Gazprom being accused of choking supply to inflate prices), but also that Asia/China is gearing up its industry again, and demand is outstripping supply, particularly after a cold winter (Lanz excluded, nach) plus, get this, a less windy couple of months, so wind farms ain't producing enough 'leccy.
Stocks are low, demand is high, prices go up. It's a bugger to store as well. Can't just bung it in a heap and come back for it later. Some bugger always nicks it.

Not just a UK issue. Globally many counties are struggling to get sufficient supplies. Blame Boris/Brexit if it makes you feel better, mind.

[Count Steer]

I see that gas prices are on the rise in the UK.
But just been Googling and North Sea gas is still producing.

Have I missed summat?

Gas prices are rising globally, something to do with Russia blackmailing Germany over a pipeline.

If the UK has it's own supply, how can other countries affect it?

Demand seems to have gone up faster than predicted as covid impacts decrease. That's supposed to be Europe wide. We do have production capacity but I'd guess they turned the taps down and it takes a while to get back on full stream. We do import/export via the Interconnector with Belgium and some of that probably starts in Russia. I think we get a fair bit from the Norway fields too. But, basically, there's high demand, supply is limited for a number of reasons, there's little or no storage - price goes up.

Electricity follows where there are gas fired power stations, industrial/commercial electricity demand goes up, more gas needed......price goes up, electricity price goes up and it's become a bit of a feedback loop.

UK fields sell at market prices so it's no cheaper using 'our own' gas.

Err...it's complicated.

Edit: Wot Gremlin said.

[gremlin]

More worrying was that the UK's shortage of CO2 could have impacted beer production. I think it was this hanging over the UK, and the civil unrest it would have caused, that prompted the govt. to step in.

[Yorick]

UK fields sell at market prices so it's no cheaper using 'our own' gas.

I didn't know that, so that's my answer really.

[Count Steer]

UK fields sell at market prices so it's no cheaper using 'our own' gas.

I didn't know that, so that's my answer really.

TBH production isn't/wasn't my patch but I think that some of the big UK gas suppliers own/have contracted production platforms but, if they can sell it on the market for top $ they aren't going to let their customers have it cheap. It's like petrol really, OPEC turn down the taps and/or demand goes up we pay market price here.

zzzzzzzzzzzzzz.........

Yorick? Yorick! Wake up!

[Cousin Jack]

There's a few things at play, the Russians being one (Gazprom being accused of choking supply to inflate prices), but also that Asia/China is gearing up its industry again, and demand is outstripping supply, particularly after a cold winter (Lanz excluded, nach) plus, get this, a less windy couple of months, so wind farms ain't producing enough 'leccy.
Stocks are low, demand is high, prices go up. It's a bugger to store as well. Can't just bung it in a heap and come back for it later. Some bugger always nicks it.

Not just a UK issue. Globally many counties are struggling to get sufficient supplies. Blame Boris/Brexit if it makes you feel better, mind.

But wind energy is green, and is good for the planet. Next thing you will be saying is that the sun doesn't shine enough in winter, and solar farms aren't producing enough leccy. I blame that Greta Thunberg.

[Mr. Dazzle]

The real answer is; the big price random number generator is broken!

[gremlin]

Ofgen at work...

[Count Steer]

More worrying was that the UK's shortage of CO2 could have impacted beer production. I think it was this hanging over the UK, and the civil unrest it would have caused, that prompted the govt. to step in.

They're going to pay the fertiliser companies to start up again making fertiliser that the market doesn't appear to need. I suppose they'll just store the excess.

That worked really well in Lebanon.

[gremlin]

Make more beer and sell it at a loss.

[Yorick]

UK fields sell at market prices so it's no cheaper using 'our own' gas.

I didn't know that, so that's my answer really.

TBH production isn't/wasn't my patch but I think that some of the big UK gas suppliers own/have contracted production platforms but, if they can sell it on the market for top $ they aren't going to let their customers have it cheap. It's like petrol really, OPEC turn down the taps and/or demand goes up we pay market price here.

zzzzzzzzzzzzzz.........

Yorick? Yorick! Wake up!

I assumed it was state owned. Dunno why.

[irie]

I see that gas prices are on the rise in the UK.
But just been Googling and North Sea gas is still producing.

Have I missed summat?

Gas prices are rising globally, something to do with Russia blackmailing Germany over a pipeline.

If the UK has it's own supply, how can other countries affect it?

Prices are set on international markets.

[Cousin Jack]

Prices are set on international markets.

Only if you buy and sell in those markets.

[irie]

It's too late though, we have a financial and economic system where it's perfectly legal for someone to gamble that he can borrow something, sell it to you and make some money without ever actually owning it.

That's also what happens when a supplier delivers a product with 30 days payment and the purchaser sells that product within 30 days. It all depends when title passes, of course, but perhaps you'd like to propose a different method of doing business?

[Mussels]

Socialist ideals from a man who moved a tax haven doesn't quite work.