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Gas Prices Might Be The Next Blow To The Economy

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http://news.bbc.co.uk/1/hi/business/5239608.stm

Last Updated: Thursday, 3 August 2006, 12:24 GMT 13:24 UK

Europe's Russian energy dilemma

By Quentin Peel

BBC Radio 4 Analysis

President Putin sees energy as a way of reasserting Russian influence
With gas and oil prices hitting new heights and the Middle East teetering on the edge of a widening war, Europe is facing an energy security dilemma.
Can it trust Russia as the principal source of its future energy supplies?
President Vladimir Putin is sitting on the largest agglomeration of gas reserves in the world, situated in some of its most inhospitable locations, including the Barents Sea, the Yamal peninsula and eastern Siberia.
He has made it clear that he sees Russia's vast energy resources as a political tool to recover some of his country's lost international influence.
....../
Pierre Noel, an energy policy specialist at the Judge Business School in Cambridge argues that the idea of Russia and the European Union having common interests in energy supply is wrong.
"We have divergent interests, which does not mean we should go to war," he says. "We should simply recognise that (the Russians) will not relinquish their market power. They will exert it."
"It's obviously sensible for European countries to co-operate and integrate their oil, gas and electricity systems," he adds.
"In gas this matters enormously, because at the other end of the pipe is the massive state-owned monopoly of Gazprom, which is a very political company."

With OPEC controlling most of the world's current oil supply and Putin most of the gas there could be some hikes in the pipeline sooner rather than later. Could a combination of Russian influence and OPEC political considerations weigh heavily in the months ahead and bring about a recession or even depression?

Smelling the coffee?

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He looks a bit like Andrew Marr to me.

All this worrying about the Russian control of European gas supplies is a bit over the top.

We should be much more worried that Russia is the second largest exporter of oil in the world, and is probably going to overtake the Saudis in the next 10 years. :o

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I find it odd that the EU and USA have the cheek to paint Russia as polically agressive becasue they are using free market capitalism to maximise revenue. It seems natural they will use oil and gas to gain political influence and revenue in just the same way as everyone else. As for the EU, it's tough luck that coal is the only viable indigenous source of fuel and that normal coal power plants pump out millions of tonnes of acid gas, CO2 and mercury each year.....

We are now on the verge of a transformation in energy supply and the cost can only go higher.

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Its also only now that people are waking up to the reality of higher gas and electricity prices. Many companies have not been increasing direct debits in line with the increases. Why ? Because running up a large deficit makes switching provider more difficult, as most want the arrears paid off in one go if you switch. The effect on available income and house prices is only beginning to feed through IMO. Once you realise you have to pay off the arrears and absorb the higher prices you have a double whammy. Add an interest rate rise or two....

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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