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Gas: They Want Our Bacon!
It has just been released that the UK came within 6 hours of seeing itself deprived of its eggs and bacon as gas supplies across the entire country depleted to danger levels on March 22nd. That meant that had it gone below that level and had the country not managed to get that supply flow open again, there would have been severe gas-supply cuts to many households in the country. But, it’s not only why that was allowed to happen that springs immediately to mind, but we might also wonder why that wasn’t revealed by the National Grid (that keeps data on the supply of gas in the UK) to the public before a few days ago.
Contrary to what has been reported recently, new investigations have just been released to show that the energy suppliers of the UK were in actual act withholding gas supplies from the country and have been accused of market manipulation. Prices have soared over the past two years for gas. Wholesale gas, which supplies both households and also electricity generation (so there is a knock-on effect from gas to electricity) are now at 70p per therm. That is a fall, but it’s still cooking up a storm. That price is way beyond the previous highs that we have seen. This time last year, prices stood at 57p. May 2009’s price amounted to a mere 28p per therm. Some are saying that energy produces are holding back on the goods in an attempt to control the market and up the prices.
The Liquefied National Gas terminal near London (Isle of Grain site) is used by BP and other major suppliers such as Centrica. On the very same day that the British ‘cuppa’ nearly ran dry because the country could only boil six hours’ worth of kettles, that terminal had a reserve of 40%. Similarly, the Liquefied National Gas site of South Hook (Wales), supplied by Total and ExxonMobil, had a reserve on the same day of 52%. Prices have now fallen to 70p a therm, but on March 22nd they reached the record high of 150p per therm. Were they in cahoots? Have they been manipulating the public, the state and the market?
Energy suppliers have issued statements that prices in the UK may have to rise again to cover increasing costs in the industry. The British Department of Energy and Climate Control is now threatening those suppliers with a state intervention in price control to maintain supplies to British customers, unless the industry gets its act together. BP has already been landed with a fine amounting to hundreds of millions of dollar in the US and some are calling for the same sort of action in the UK in an attempt to halt market manipulation of prices. BP was fined in 2007 and had to pay out the hefty sum of $373m to the US Department of Justice (for environment crimes and fraudulent trading agreements). Between April 2003 and February 2004 they were found to have fixed prices and manipulated the propane market. It was the highest fine ever imposed by the Commodity Futures Trading Commission (CFTC) in the US. It was a sign back then that the Commission and the US Department of Justice were not prepared to accept market manipulation. The British government has not been so categorical and it looks like energy suppliers have been cooking the market price in a fry-up of greasy manipulation in the UK.
However, it has already been brought to light that three of Europe’s largest oil exploring companies (Royal Dutch Shell Plc., Statoil ASA and BP Plc.) are already under investigation from the European antitrust regulators of the European Commission for price collusion, causing prices to inflate. The British government has stated that oil companies will need to cooperate to the full with the European Commission in the investigation over price-fixing. They have allegedly fixed prices and distorted the market since 2002. BP has already posted a first-quarter profit in the region of more than $4 billion this year, earning more than 30% over what experts said they would. Not bad for one of just many of the companies that has been withholding gas from the UK in a bid to get more money and boost prices in an already over-inflated market. What will they be asking for next? Suppose they’ll be wanting their cake and to be able to eat it. Let’s hope for all of us that the EU Commission hits them hard and that prices come back to where they should be!
Originally Posted http://www.tothetick.com/gas-they-want-our-bacon
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No. that's very silly. The british have a specific problem caused by delivering themselves over to the tender mercies of private capitalist concerns; who don't have any tender mercies.
the source of this problem is that the "private" industry of "capitalists" just got it nearly free since all the development came from PUBLIC money and PULIC infrastructure offloaded for a song & six-pence by Maggie the Fucking Hun.
What??? The world is positively awash in natural gas. The fact that the price of it has skyrocketed in the UK tells you just how completely fucked up that country has become.
"British Department of Energy and Climate Control" !?
how is their Ministry of Education (officialy) called ?
"British Department of Education and Mind Control" ?
Ministry of Finance ?
"British Department of Finance and Expectations Control" ?
Ministry of Defence ?
"British Department of War and Population Control" ?
Somehow corporate power has to be curbed. We need a Mc.Carthy era type witch hunt to get control of this monster that has taken over and bring it to heel.
"Capitalism" has incorporated rabies.
The incorporated "hear no evil, see no evil, and speak no evil." The just need not apply in as little as the rule of law itself.
Why all the bother about natgas? I thought the brits were getting all the electricity they needed from windmills and solar panels, right?
When I watch the bbc it's all green and alt energy, could it be they are not telling [showing] the truth?
britian
solar power
sunshine
hahahahahahahahahaaha
and don't forget the horseshit that the Manors produce, why that is as green as it gets. - Ned
Yes, it could.
There was a period a few years ago when gas prices in the UK were rocketing, but there was plenty of supply in mainland Europe, _yet_ the gas interconnector between UK and Europe was running way under 100%.
So since the data/records etc. for that incident are available, maybe the regulators could take a little look...
If you try to look into current events, the companies will say data not available/market sensitive.
None of the above detracts from the UK's woeful failure to organize high volume gas storage.
Merely an optimization problem. 'course, optimization is always with respect to an objective. and the regulators don't have an objective until they are told. Why, they might as well go watch pR0n...
- Ned
Greed: The scourge of the world.
Liberalism: The scourge of the world.
Corrected it for you.
So u prefer facism
Neither is particularly appealing. However, there is Walter's comment - http://www.youtube.com/watch?v=J41iFYO0NQA
Communism without a manifesto.
Get used to the manipulation of everything to squeeze the last remaining bill from your wallet. Times are getting tough for TPTB. The universe of sheep to be shorn is diminishing at a rapid pace. Wait until they start manipulating food prices. Oh Wait.
oh ye of little foresight. The actual long-term agenda is to manipulate life-span itself. A stronger worker able to live only to age 50 makes many babies for the next generation of slaves.
This is but a stepping stone.
And health care. No stitches for you!
Until we can drain every last thing of value from you and destroy all private property with Agenda 21, we cannot have our world-wide socialist slave planet.
Thank you for your servitude,
"Central Bankers."
Manipulation of food prices in the UK goes back at least until 1800's (the Corn Laws).
A fellow by the name of Richard Cobden who was a classical liberal and anti-empire actually worked to have those repealed, and was successful. Just pointing that out, for whatever it's worth.
I find it unacceptable that the government has failed to print new hydocarbons at a rate matching that with which it has expanded the money supply. Clearly heads must roll.
Clearly, the Brits should be putting their 'investments' into the output of Leo's "Chinese Solar" factories. Would have done wonders for their economy. But NO!!!!, bastards in the so-called City placed their investments elsewhere.
- Ned
{otoh, the decline in bacon consumption is a slight positive from this point of view}
I find it astonishing they'd still rely on that smelly old arabian relic, instead of clean, friendly, convenient, energy certificates, to cook their meals. Odd. Just is...