Wednesday, January 04, 2006

Britain facing fresh oil supply crisis, warn independents

What surprises me about this is:
NHS Trusts on interruptible gas contracts have begun frantically shopping around for oil supplies to heat hospitals.

The whole point about having interruptible supply of gas is that you can tolerate an interruption. I am surprised that hospitals have decided they don't need reliable supplies of gas.

This is less surprising:
"The problems are rooted in what is happening in the gas industry and the problems the gas power stations are having in getting supplies. They have increased their use of other oil products and that has meant a lot of other users are having serious issues in getting hold of supplies," Mr Maud said.

Some CCGTs can run on oil (distillate) as well as gas. The price of gas is still silly linked to the fact that the most volatile part of demand (property heating) is not responsive to price because they are mainly on fixed price contracts.


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