MPs blame gas and oil industry for supply crisis

By Andrew Murray-Watson (Filed: 20/03/2005)

The influential Commons Trade & Industry Select Committee will this week publish a report that lays the blame for this winter’s narrowly averted gas supply crisis at the door of the oil and gas industry.

The report by the committee, chaired by Martin O’Neill MP, will say that the industry has not done enough to address the chronic problem of the lack of gas storage capacity in the UK since MPs last highlighted the issue two years ago.
Last week The Telegraph revealed that Britain was in danger of running out of gas as the freezing weather in early March severely depleted several strategic gas storage facilities. If the UK had been hit by another cold snap last week, National Grid Transco, the gas distribution company, would have been forced to start disconnecting industrial customers that had “interruptible supply” contracts.

Speaking yesterday, O’Neill said: “Since the report a week ago, nothing has dissuaded me of the view that we have been sailing very close to the wind when it comes to gas.”

Until recently the UK produced more gas from the North Sea than it needed. However, supply has been falling steadily and during very cold winter days the UK now uses about 420m cubic metres of gas – about 100m cubic metres more than the North Sea can now produce.

Telegraph