Natural gas becomes a hot commodity in the U.K.

8-Jan-2010

Natural gas stores in Britain have been severely depleted in recent weeks due to unusually cold weather.

Gas use actually broke records this week: the 454 million cubic meters used on January 7 was the most since the same day in 2003, BBC reported. Gas consumption on Friday was projected to surpass even Thursday's figure.

Jeremy Bending, director of network strategy at electric utility National Grid, reassured Britons that there would not be a "lack of gas."

The Wall Street Journal noted that Britain's focus on reducing carbon emissions has left it with paltry fossil fuel stores. Even compared to carbon-conscious Germany - which has gas storage capacity equivalent to 19 percent of annual consumption - Britain's reserves are minimal: The nation has capacity equal to just 4 percent of consumption.

The gas-rich U.S., by contrast, has storage capacity equivalent to 100 percent of consumption.

European countries, unlike America, are import-dependent with regard to natural gas. The U.K. may need to import 70 percent of the gas it needs by 2015, the Journal reported. Germany, for its part, depends on natural gas for 23 percent of its energy use; most of its gas comes from Russia.

Breaking news brought to you by the Oxford Princeton Programme, specialists in oil courses. This and other related topics are part of the forthcoming course Exploring European Natural Gas Markets on 17-18 March, 2010 in London.