Gas Prices

The Economist reports  that spot gas prices have fallen but that UK energy prices cannot because the energy companies have already agreed a price; this is known as a forward rate agreement.

Someone is making a shit load of money here because there is a secondary market consisting of options and CFDs. So either the Gas providers or the derivative market makers are making a lot of money beyond the excessive profits of the energy companies. The use of FRAs is, it would seem, is a poor decision. Maybe if OFGEM didn’t nod through the price increases requested by, the so-called energy companies, most are commercial billing entities, they would be more careful.

I recommend you look at the article as it has a chart, and references a further articles on the UK Energy Market and the broken gas market.  …

Ships, Steel & Gas

Ships, Steel & Gas

I have worked as a London (or Thames Valley) white collar worker for all my working life but the GMB is strong in manufacturing and energy. We had several debates of special interest to Shipbuilding, Steel, and Energy, especially the Gas industry and there was also a motion on fracking. For more see below/overleaf.

Ships

The shipbuilding motions refer to public procurement policy and reference concepts echoed in the “Just Transition” movements, about not leaving communities nor workers behind. While looking for a picture to decorate this article, I came across an article, entitled, “Another RN supplier goes under – the closure of Appledore shipyard”, which documents the impact on the community but critiques Babcock’s commercial strategy. In reading the article, it makes clear that Appledore was part of the Aircraft Carrier supply-chain and so their commissioning prolonged the life of the shipyard. GMB Congress also highlighted the failure of the Government to “Buy British” for the latest generation of Fleet auxiliary ships. I have written several articles mirroring arguments about  what I consider to be the mistakes of renewing Trident and the building of the new Fleet Carriers. I think the Union needs to engage in these arguments i.e. what do we need and can they be built in multiple sites. It’s not just about how many hospitals could have been funded; what defence assets are we missing to fund the subs & carriers. The country needs to also address retraining and skills reuse. Labour’s promise of a National Education Service, with free, life-long learning available to all is an important part of keeping the UK’s skills relevant and renewing them. The debate can be found on youtube.

Steel

The fate of what remains of British Steel was also debated, and I reflected on this earlier this month on this blog. A motion had been submitted to Congress over the winter, again calling for a “Buy British First” policy and this was supplemented by an Emergency Motion calling for the Scunthorpe Steel Works to remain open. [Video of the moving, in several ways, speech]

 

Nothing was mentioned about the Government’s handling of tariffs. (A mistake I would have thought).

Gas

The future of the Gas industry was debated via Composite 15.

While in entering the debate, I assumed that I’d have a problem with the GMB position as too often Unions take a no change position, the composite is well argued and highlights certain critical facts, although not others. (Electricity cannot be stored at scale, Gas can, electricity leaks over the grid. Hydrogen is not a fossil fuel.)  The science of innovation with respect to the use of Hydrogen has not been documented either by the GMB branches nor by Friends of the Earth. (I am trying to chase it down; I have written to SGN who had a stand in the exhibition space.) There’s no question that if Momentum and Friends of the Earth get their motion to Labour Conference, the Just Transition Unions will vote it down, unless they compromise on Gas & Nuclear. The GMB motions states that there is scientific consensus that gas heating in the home is part of a transition to a carbon neutral economy.

I think we need a better understanding of the science.

I read a lot about this in order to write this report, and my notes are on my wiki.

Fracking

A motion on Fracking, basically opposing it, in the light of recently discovered facts and regulatory changes was withdrawn at the request of the CEC.

ooOOOoo

The words of the Gas and Fracking motions are posted on my notes are on my wiki. …