In the United Kingdom, electricity produced from coal declined from 42% of total electricity generation in 2012 to 7% in 2017. According to U.K. National Grid data, on April 21, 2017, the country went 24 hours without any electricity generated from coal for the first time since the 1880s. In January 2018, the U.K. government laid out an implementation plan to shut down all coal-fired electricity generation plants by 2025 that do not have carbon capture and storage technology.
Source: U.S. Energy Information Administration, based on Digest of U.K. Energy Statistics and National Statistics: Energy Trends
Note: 2017 values are estimates based on data through September.
Coal consumption has been declining in the United Kingdom for decades. Total coal consumption peaked at 244 million short tons (MMst) in 1956, the year the United Kingdom enacted the Clean Air Act. The Clean Air Act—prompted by the great London smog of 1952—prohibited the emission of dark smoke from industrial buildings, private homes, and railroad locomotives.
At the time, industrial coal use accounted for more than half of total U.K. coal consumption, and railroad and home use accounted for almost a quarter of total coal consumption. The remaining coal consumption in 1956—about 50 MMst—was mainly in the electric sector.
As industrial, railroad, and residential use of coal decreased, consumption of coal by the electric power sector increased, peaking at 99 MMst in 1980. Coal consumption in the electric power sector began a steep decline in 2013. Several factors contributed to the decline, including the implementation of the U.K. Carbon Price Floor (CPF), which increased the cost of carbon emissions for electric generators.
The United Kingdom’s CPF works in combination with the European Union’s Emissions Trading System (EU ETS). If the EU ETS carbon price is lower than the U.K. CPF, electric generators have to buy credits from the U.K. Treasury to make up the difference. The CPF applies to both generators that produce electricity for the grid and companies that produce electricity for their own use.
Source: U.S. Energy Information Administration, based on European Energy Exchange and House of Commons Library
The U.K. CPF is currently 18 British pounds sterling (GBP) per ton of carbon, the equivalent of about US $25 per metric ton, where it will remain at least through the 2019 fiscal year (which ends March 31, 2020). Since 2012, the EU ETS carbon price has stayed below 10 Euro per metric ton of carbon, the equivalent of about US $12.30 per metric ton. Although originally intended to increase annually, the CPF was capped from 2016 to 2020 to limit the impact on U.K. businesses. Discussions are ongoing about the value of the CPF after 2020.
For more information on the United Kingdom’s energy industry, see EIA’s recently updated United Kingdom Country Analysis Brief.
Principal contributor: Justine Barden
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In the last week, global crude oil price benchmarks have leapt up by some US$5/b. Brent is now in the US$66/b range, while WTI maintains its preferred US$10/b discount at US$56/b. On the surface, it would seem that the new OPEC+ supply deal – scheduled to last until April – is working. But the drivers pushing on the current rally are a bit more complicated.
Pledges by OPEC members are the main force behind the rise. After displaying some reticence over the timeline of cuts, Russia has now promised to ‘speed up cuts’ to its oil production in line with other key members of OPEC. Saudi Arabia, along with main allies the UAE and Kuwait, have been at the forefront of this – having made deeper-than-promised cuts in January with plans to go a bit further in February. After looking a bit shaky – a joint Saudi Arabia-Russia meeting was called off at the recent World Economic Forum in Davos in January – the bromance of world’s two oil superpowers looks to have resumed. And with it, confidence in the OPEC+ club’s abilities.
Russia and Saudi Arabia both making new pledges on supply cuts comes despite supply issues elsewhere in OPEC, which could have provided some cushion for smaller cuts. Iranian production remains constrained by new American sanctions; targeted waivers have provided some relief – and indeed Iranian crude exports have grown slightly over January and February – but the waivers expire in May and there is uncertainty over their extension. Meanwhile, the implosion in Venezuela continues, with the USA slapping new sanctions on the Venezuelan crude complex in hopes of spurring regime change. The situation in Libya – with the Sharara field swinging between closure and operation due to ongoing militant action – is dicey. And in Saudi Arabia, a damaged power repair cable has curbed output at the giant 1.2 mmb/d Safaniuyah field.
So the supply situation is supportive of a rally, from both planned and unplanned actions. But crude prices are also reacting to developments in the wider geopolitical world. The USA and China are still locked in an impasse over trade, with a March 1 deadline looming, after which doubled US tariffs on US$200 billion worth of Chinese imports would kick in. Continued escalation in the trade war could lead to a global recession, or at least a severe slowdown. But the market is taking relief that an agreement could be made. First, US President Donald Trump alluded to the possibility of pushing the deadline by 2 months to allow for more talks. And now, chatter suggests that despite reservations, American and Chinese negotiators are now ‘approaching a consensus’. The threat of the R-word – recession – could be avoided and this is pumping some confidence back in the market. But there are more risks on the horizon. The UK is set to exit the European Union at the end of March, and there is still no deal in sight. A measured Brexit would be messy, but a no-deal Brexit would be chaotic – and that chaos would have a knock-on effect on global economies and markets.
But for now, the market assumes that there must be progress in US-China trade talks and the UK must fall in line with an orderly Brexit. If that holds – and if OPEC’s supply commitments stand – the rally in crude prices will continue. And it must. Because the alternative is frightening for all.
Factors driving the current crude rally:
Already, lubricant players have established their footholds here in Bangladesh, with international brands.
However, the situation is being tough as too many brands entered in this market. So, it is clear, the lubricants brands are struggling to sustain their market shares.
For this reason, we recommend an impression of “Lubricants shelf” to evaluate your brand visibility, which can a key indicator of the market shares of the existing brands.
Every retailer shop has different display shelves and the sellers place different product cans for the end-users. By nature, the sellers have the sole control of those shelves for the preferred product cans.The idea of “Lubricants shelf” may give the marketer an impression, how to penetrate in this competitive market.
The well-known lubricants brands automatically seized the product shelves because of the user demand. But for the struggling brands, this idea can be a key identifier of the business strategy to take over other brands.
The key objective of this impression of “Lubricants shelf” is to create an overview of your brand positioning in this competitive market.
A discussion on Lubricants Shelves; from the evaluation perspective, a discussion ground has been created to solely represent this trade, as well as its other stakeholders.Why “Lubricants shelf” is key to monitor engine oil market?
The lubricants shelves of the overall market have already placed more than 100 brands altogether and the number of brands is increasing day by day.
And the situation is being worsened while so many by name products are taking the different shelves of different clusters. This market has become more overstated in terms of brand names and local products.
You may argue with us; lubricants shelves have no more space to place your new brands. You might get surprised by hearing such a statement. For your information, it’s not a surprising one.
Regularly, lubricants retailers have to welcome the representatives of newly entered brands.
And, business Insiders has depicted this lubricants market as a silent trade with a lot of floating traders.
On an assumption, the annual domestic demand for lubricants oils is around 100 million litres, whereas base oil demand around 140 million litres.
However, the lack of market monitoring and the least reporting makes the lubricants trade unnoticeable to the public.
Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
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