Are The Tories Bluffing About Fracking?
I’ve just listened to a Treasury Minister (Chris Philp (?)) on the BBC and he didn’t mention fracking.
But he did mention more oil and gas in the North Sea, where there is a project agreed between the British and Scottish governments called INTOG, which aims to innovatively cut carbon emissions in the North Sea and possibly extract smaller amounts of gas and oil from existing wells.
As you know, I think fracking is irrelevant. It will take a few years to deliver substantial amounts of gas and we can extract more from the North Sea and by repurposing existing wells.
We might even find one or two existing wells, that could be converted to much-needed gas storage.
I also believe that the cash flow in taxes and leases from offshore wind will be astronomic and it can be used to finance borrowing. We did the same with Artemis to finance the company against future sales. But we were only borrowing millions. We used to parcel up all our leases from companies like Shell, NASA and BP and effectively sell them to Lloyds Bank at a discount.
I’m sure that a clever banker could find a mechanism, that converts future income from offshore wind into a magic money tree for today. Is that what Kwasi Kwarteng has done, in order to cut taxes?
The one problem with offshore wind with the public, is that putting in the cables arouses the NIMBYs. It should also be born in mind, that a lot of the grid connections, go through Tory seats, where NIMBYs are very much against more cables.
So I do wonder, if Moggy has announced the start of fracking to give the NIMBYs a target, so they allow the efficiency of offshore oil and gas to be improved and offshore wind farms to be built without hindrance.
Perhaps Moggy should concentrate on the most important thing that our offshore wind industry needs. This is an innovative pricing mechanism for energy storage, that does the following.
- Allows investors to get a similar return on energy storage to that that they get for offshore wind farms, onshore solar farms and interconnectors.
- Encourages the building of more energy storage.
- Assists in the development of novel energy storage ideas.
As one estimate says we need 600 GWh of energy storage in the UK, sorting this pricing mechanism, can’t come soon enough.
The previous government was talking about this, as I wrote in Ministerial Roundtable Seeks To Unlock Investment In UK Energy Storage.
So continue the conversation, Moggy!
The Anonymous Widower 