United Kingdom - May 29
by Staff
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The government has announced moves to increase North Sea oil production, but Energy Minister Malcolm Wicks said they would have no impact on fuel prices. Lorry drivers have staged protests against rising costs and Labour MPs have urged ministers to rethink increases in both petrol and road tax. The PM, who met industry bosses, warned that high oil prices were here to stay.
There are problems here, sure enough, but the word he left out was "geological", and the omission is crucial. It means he really doesn't understand the profundity of the current crisis, and explains why panicky initiatives are bound to fail. Brown and Darling can implore North Sea oil producers to pump harder, they can even finagle the tax regime to raise the incentives, but it will make very little difference. North Sea oil production peaked in 1999 at 2.9 million barrels per day and has now fallen by almost 60 per cent to around 1.2 million. This happened, as in all mature oil produci
But the measures, announced as U.K. Prime Minister Gordon Brown and Chancellor of the Exchequer Alistair Darling met with U.K. oil-industry executives to explore ways to increase oil and gas production, seemed unlikely to significantly alter Britain's fuel-price problems. The British government, like others in Europe, has come under fire in recent weeks from groups that are severely affected by high fuel prices.
The transmission network blamed the blackouts on a sudden loss of frequency caused by the near-simultaneous failure of the Sizewell B nuclear power station and the Longannet 1 coal-powered fire station in Fife, both of which "tripped" within a couple of minutes of each other at around 11.30am. ...The blackouts prompted warnings about the UK's "crumbling" energy infrastructure from McKinnon and Clarke, an independent energy consultancy, but the National Grid denied any systemic failures. Stuart Larque, its spokesman, said: “We have a very robust system in the UK. It rarely fails and that’s why everybody is talking about it so much...It was just such a freak event."
From there the drivers made their way to a rally at Marble Arch, where they told of jobs under threat, severe belt-tightening and family companies facing closure. Early yesterday morning, as the convoys set off from Kent, Essex and all points north and west, they were greeted with spontaneous applause from motorists, who are also feeling the pinch with petrol prices rising to an average of about 114p a litre and diesel to 126p. |
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