Gas shortages in the UK

…Well, it seems the US dodged a bullet this winter. As I wrote in various episodes (including item 15 below), the natural gas situation was very tense and depended, to some extent, on the weather. Thankfully for you guys, the winter has been a lot milder than expected, in general, and consequently, heating and electricity needs have been lower than feared, and gas was available in sufficient volumes to avoid any shortages and the accompanying price spikes.

Before I turn to the UK, which was facing the same risks, and which is facing a much harsher winter, do note that today’s apparently “low” prices for natural gas are still two-three times more expensive than only a couple of years ago, and, more to the point, twice as expensive as the high range of expectations for power producers when they built they gas-fired plants, as this graph for UK gas prices, from a 2004 analysis of electricity costs prepared by the Royal Academy of Engineers, shows:

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