When Will We Next See Cheap Energy ?

[mongers]

In the last couple of days petrol (gas) and diesel prices have reach record highs in the UK.

Currently gas costs £1.419 per litre and diesel £1.489, so the equivalent of a US gallon of gas would now cost 5c short of 10 bucks and diesel would be $10.40 !

I'm convinced there were less cars about on the roads today, perhaps due to the rocketing fuel cost or maybe I was imagining it ?


So given people of my age were brought up during a period of historically low and available energy prices, my question is when do you expect we'll next see a period of low energy prices and how might this come about ?

I'm assuming this is a possibility and we're not stuck with rising costs into the long run.

[Eddie Teach]

As long as we're dependent on oil derivatives, cost is just gonna keep going up.

[Iormlund]

When there's either a global economic collapse or a major engineering breakthrough in the energy field.

[The Brain]

When the rich are made to pay for it.

[mongers]

I forgot to mention $5.70 and $5.80 of those notional gallons is made up of duty and VAT tax.

[jimmy olsen]

We'll probably transition to Natural gas in the next couple of decades. So maybe in 20-30 years.

[mongers]

We'll probably transition to Natural gas in the next couple of decades. So maybe in 20-30 years.

This is already happening and it's not 'cheap'.

[jimmy olsen]

We'll probably transition to Natural gas in the next couple of decades. So maybe in 20-30 years.

This is already happening and it's not 'cheap'.

Because there's no economy of scale. If it was being used on the scale of gasoline it would be.

[mongers]

We'll probably transition to Natural gas in the next couple of decades. So maybe in 20-30 years.

This is already happening and it's not 'cheap'.

Because there's no economy of scale. If it was being used on the scale of gasoline it would be.

It is, it probably account for 30% of  world energy supplies and is nearly challenging oil's position in the US market. 

[Sheilbh]

We'll probably transition to Natural gas in the next couple of decades. So maybe in 20-30 years.

This is already happening and it's not 'cheap'.

Because there's no economy of scale. If it was being used on the scale of gasoline it would be.

It is, it probably account for 30% of  world energy supplies and is nearly challenging oil's position in the US market.

It's about 25% or so in the US's energy mix, which is behind oil but increasing.  It's about 40% in the UK, and I think we've been producing it for longer too.  It's not so far behind oil that its got no economy of scale - like some renewables.

[mongers]

No, the US natural gas sector has been huge for more than 40 years.

Our own production of gas has slumped from it's high at the turn of the century, hence the need for ever more imported/Russian stuff.

[KRonn]

Supposedly the cost of natural gas in the US is lower over all. The US is drilling for so much more gas, finding large new deposits, on top of the already large reserves here.

[Phillip V]

[mongers]

Supposedly the cost of natural gas in the US is lower over all. The US is drilling for so much more gas, finding large new deposits, on top of the already large reserves here.

Yes, I think that was what Tim was reference these rather speculative figures for enormous new deposits, which are as ye unproven.

Currently the US has about 4% of world natural gas reserves, Russia has six times that at 24% and both Iran and Qatar are about the 15% mark.

Incidentally, going back to US historical gas production, I looked up the figures and back in 1971 the US produced the exact same amount of 611 billion CU metres as the latest figures I have, those of 2010.

And the period in between saw pretty stable production, usually over 500 billion.

[KRonn]

Supposedly the cost of natural gas in the US is lower over all. The US is drilling for so much more gas, finding large new deposits, on top of the already large reserves here.

Yes, I think that was what Tim was reference these rather speculative figures for enormous new deposits, which are as ye unproven.

Currently the US has about 4% of world natural gas reserves, Russia has six times that at 24% and both Iran and Qatar are about the 15% mark.

Incidentally, going back to US historical gas production, I looked up the figures and back in 1971 the US produced the exact same amount of 611 billion CU metres as the latest figures I have, those of 2010.

And the period in between saw pretty stable production, usually over 500 billion.

Interesting that the production shows about the same in 1971 and 2010, no big diffrences. I would not have thought that. The US must have larger reserves that 4%. That doesn't seem to make sense, given how some big name people like T Boone-Pickens has wanted the US to convert over to gas.