Saturday, 22 June 2013

Life Imitates Art. "Shale Causes Economic Crisis"

Talking It's Hind Legs Off
A couple of days ago I wrote it can only be a matter of time before someone argues that production of shale gas will cause gas prices to rise.

This obviously wasn't a big enough challenge because in fact someone has taken it upon themselves to claim that shale gas could "create an economic crisis".

Yes, read all about it in the Grauniad from the pen of Dr Nafeez Ahmed, "executive director of the Institute for Policy Research & Development and author of A User's Guide to the Crisis of Civilisation: And How to Save It among other books".

Other books ... you mean there's more where this came from ??  While we all rush to Amazon to order his complete works, here's a weekend compo.  Devise the best argument you can, for why shale gas production in the UK will cause gas prices to rise.

Yes, I know it's lacking in scope and ambition, but see what you can do.

ND

24 comments:

andrew said...

Too simple

(a) We use more shale gas.
(b) This causes global climate change
(c) In the UK climate change = cooling
(d) Colder = we need more heating
(e) More heating = more demand for shale gas
(f) Price rises !

iirc I read this in a book by Dr Nafeez Ahmed :)

Bill Quango MP said...

Economic crisis because of the ground shaking, city destroying earthquakes that would surely follow even test drilling.

Malcolm Tucker said...

NHS A+E would swamped by people fried in their bathtubs from the gas flames searing from their taps.

SimonF said...

Slightly O/T but I thought the Horizon programme on the subject was quite good. Objective in addressing some of the concerns and not overrun by greenies.

Jan said...

It's bound to be "the wrong type of gas" and so there will have to be a second distribution method for all those who want to use it. This means massive spending on gas distribution infrastructure which adds to the price of all gas.

I am not a robot - boing said...

The Department of Transport and the unions will demand that the costs of transporting fracked gas through static pipelines must be charged at the same - or slightly higher - rate as that used by conventional tanker lorries to move oil and petrol around by road. With the annual petrol/deisel tax escalator, this will ensure gas prices continue to rise..

gsd said...


My scenario is pretty similar to Andrews (above, apologies), but is based on a an article I read which claimed that shale gas produced 1/2 as much greenhouse gas as "regular" gas [hence the USA's recent reduction] - not quite sure how that is true, but...

1) whole of UK swaps to shale gas.
2) this heroic effort by the UK not only stops Global Warming, it actually reverses it [because, obviously, you know, we're such a major player in the emissions world].
3) Global Cooling has 2 effects:
a) the whole of the north sea freezes, crippling the remaining production rigs.
b) Europe shivers & turn up the central heating.
4) increased demand & reduced supply -> price rises.

andrew said...

This is why I love England.

No matter what we do, the weather will be pants.

Anonymous said...

Following on from Jan - as it is so toxic it will need to be put in pipelines 10 metres deep around the UK.

This leads to a civil engineering bonanza under PFI contracts by new Lichtenstein based contractors. All of the future costs and none of the benefits.

This scenario has been attempted before by insisting HV lines are put underground because the waves / pulses from power lines are more dangerous than your mobile phone.

Elby the Beserk said...

Please. It is "the loss-making" Grauniad, not just "the Gruaniad)

Blue Eyes said...

No no no, surely the point is that wealth is poverty. Strength is weakness. Energy independence is energy slavery. Etc.

Or is it that cheap energy allows more economic activity and production, that fuels wage rises and an inflationary spiral ensues cancelling everything out?

Oh I give up!

Nick Drew said...

1st Prize: Andrew - I like your line of thinking; and particularly the speed with which you came up with the required piece of sophistry (you're not by any chance Alistair Campbell ..?)

Hon Mention: Jan - funnily enough, that's what they are saying about biogas! (Also as you perhaps know there is a separate gas grid in Holland/Belgium/North France/N.Germany to carry the very low-calorific gas found in the gigantic Groningen field in the Netherlands - alongside the gas grid that carries normal-quality natural gas)

Andrew gets to decide the strike price for EDF's new nuke

Budgie said...

No, no, ND, you can't award the prize so soon ......

Fracking = earthquakes
Earthquakes = huge insurance claims
Massive insurance claims = bust insurance companies
Bust insurance companies = bailed out by the government
Unlimited bailing out = economic meltdown
Meltdown = government money printing
Meltdown = higher taxes
Higher taxes + devalued currency = higher gas prices

Oh but wait ......

Anonymous said...

1) Fracked gas is slightly cheaper so economy grows.
2) Job opportunities suck in workers from eastern European EU states
3) Chancellor acts on EU diktat to 'harmonise' energy costs and frack tax sky-rockets
4) Workers laid off in 10,000s, but claim CB, HB, JSA etc
5) Productive economic sector crumbles under double-whammy of higher energy costs and taxation to pay for social security

Nick Drew said...

excellent!

there will be second-round prizes: keep those Nobel-prize-winning econometric brains in gear

Jan said...

Thankyou Nick. I didn't know about the separate gas grid in the Netherlands but I do remember when all our cookers etc had to be adapted to use north sea gas from coal gas. (I was only a nipper then I hasten to add)

Timbo614 said...

It will be yet another bubble and it will burst!

leading to the usual financial wailing for bailing

leading to higher taxes etc and there we join the end of everyone else's theory.

:)

Blue Eyes said...

Do I get a point for guessing that Dr Nafeez Ahmed probably does not wear a tie?

andrew said...

Thanks, and the subsidy will be in the post.
I would prefer to turn down the nuke and press forwards on the construction of the Great Bristol Boating Lake (tm).

Can I have a point for finding a pic of Dr Nafeez Ahmed wearing a tie - only just though and it wasn't easy.

Nick Drew said...

ROUND TWO PRIZES

Some more great (late) entries; so it gives me the greatest pleasure to award Budgie with the prize he so richly deserves, for this and indeed all his contributions over the months ...

you get to replace Jonathan Brierly at DECC - and may you be very happy there

BE - for you, in this manor there will always be a point for turning up (mine's a pint of wallop)

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