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By Philip Aldrick
14 March 2022, 19:43 GMT

U.K. government officials have asked brick makers to prepare for production slowdowns in case the war in Ukraine causes energy supply shortages, according to the head of the industry’s lobby group.

Keith Aldis, chief executive officer of the Brick Development Association, said companies have been contacted to establish whether they can cut production should natural gas supplies be disrupted. A spokesman at the Department for Business, Energy and Industrial Strategy denied that any officials had been in contact with the industry.

Energy intensive industries tend to be first affected by rationing to ensure people are able to heat their homes. Aldis said the last time brick makers were asked to slow production was in the winter of 2008, when U.K. gas reserves fell to perilously low levels after Russia switched off supplies through Ukraine.

Britain is not facing an immediate risk of factory shutdowns, since only 4% of its gas is sourced from Russian but the ceramics industry fears that a six-fold increase in market prices in the past 12 months heralds a possible supply crunch...

https://www.bloomberg.com/news/articles/2022-03-14/u-k-brick-makers-say-officials-want-natural-gas-rationing-plans?utm_source=google&utm_medium=bd&cmpId=google&sref=Em01M8Hr

Late-reported trade from earlier in the day: 6.3m+ at 1.01p.

From Citywire's round-up of the morning papers:

Top stories
Financial Times: The government is exploring whether old coal-fired power stations that are due to close this year could be kept open to ease the energy crisis triggered by Russia’s invasion of Ukraine.

Gold is playing its age-old role as a safe haven in times of wars and crises, and people all over the world are piling in.

Russia’s invasion of Ukraine has sent the price of everything from oil and gas to wheat and metals skyrocketing, sparking inflation fears and threatening global growth. That’s driving retail investors everywhere from Vienna and Singapore to New York to the safety of gold, which spiked to $2,070.44 an ounce, close to the record reached during the pandemic.

The almost 10% surge in gold prices since the start of the year is turning into a boon for bullion dealers like Rudolf Brenner, founder of Philoro Edelmetalle GmbH, whose shops in German-speaking Europe now have long lines of buyers -- a trend that’s likely to continue with the conflict showing no signs of abating.

“When the crisis in Ukraine started, we saw massive orders” said Brenner, whose sales are triple their normal level. “People are buying everything.” ...

https://www.bloomberg.com/news/articles/2022-03-13/gold-dealers-swamped-by-demand-as-war-creates-inflation-scare?sref=Em01M8Hr

yes, that was mentioned in the Sunday Times, on p9:

" ... A note issued by the Energy Aspects consultancy said: 'Risks of energy rationing and ultimately a recession are growing by the day - something most policymakers seem to be ignoring or not grasping right now. If Russian oil is not integrated back into the market within the next few weeks, we are at a real risk of having to ration crude and products by the summer'.
By Friday it had revised its view and said diesel rationing could start as soon as April. Predictions of a shortage are more serious than last September, when petrol forecourts ran dry. At that time the government insisted there was no oil shortage, only panic buying".

Definite signs of unease amongst the derampers this weekend.

Could energy costs have implications for the rental market, could tenants seek to reduce rental prices in order to compensate for energy costs?

IGas development director Ross Glover said a planning application (at Spring Roads in Misson, Notts) could be submitted as early as next month if the moratorium were lifted.

He added: 'There is a significant need for gas and we believe we can help, and much quicker than we originally thought. But we need a streamlined regulatory system which will enable us to get this going.'

Charles McAllister, policy manager of UK Onshore Oil and Gas, said: 'A lifting of the moratorium would not be enough. The Government would need to make sure the planning and permit regimes do not inhibit development.' ...

Why are you using Drill or Drop figures for Arreton when UKOG have produced a CPR in the same year?
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Because I was looking at material published at the time of the council's rejection of UKOG's application.

This will affect all of us, not just the poor, although, of course, it is the poor who will suffer the most.

But there is no shortage of mothers and mothers-in-law within the middle classes living in quite comfortable houses but on fixed and relatively modest pensions.

Sir Keir Starmer is there to attract votes away from the government, the PM has a serious problem on his hands.

Kwarteng said: 'This is no longer about tackling climate change, or reaching net-zero targets.

'There is now an urgent need for Britain to become energy-independent. Because leaving our country continually exposed to a gas market that can be manipulated by the Kremlin would be a complete dereliction of duty.'

Hear, hear!

Mr Cartwright added:

“In this transition, other countries are sourcing essential supplies closer to home. They are prioritising domestic energy over imports. The UK can do the same. We can broaden our energy base and become more resilient when the next shock or price spike comes along. Making the most of our oil & gas resources is part of that solution.”

Prophetic.

From Drill or Drop's coverage of the decision:

The company previously estimated there were 227 million barrels of oil beneath the Arreton area and that the site could produce 500 barrels a day.

It wanted to target oil in the Portland formation at about 900m down, as well as deeper prospects. The vertical well would be drilled to 1,700m.

UKOG has argued that domestic oil production was less environmentally damaging than importing oil. If successful, the Arreton site could generate £0.5bn, the company said.

https://drillordrop.com/2021/10/19/breaking-isle-of-wight-oil-drilling-plans-blocked/

Minor correction: the decision was taken during the evening of 19/10/21 (not on 20/10/21).

6 months to appeal, the council's decision goes back to 20/10/21 (don't have the date of its publication by the council).

Taken from HampshireLive website on the same day:

"Local councillor for Arreton, Suzie Ellis, said if UKOG were to appeal the application to the Inspectorate, she would write to the Secretary of State who has the power to take over, or ‘call-in’, the decision rather than letting the local authority or other parties decide.

At the meeting, Matt Cartwright, UKOG’s commercial director, said importing 36 per cent of the UK’s energy made “no economic sense when we have oil right under our feet".

Wonder if, in the event of an appeal, the local councillor for Arreton would still write to the Secretary of State to intervene today.

Doubt it very much: Drill or Drop's tone is neutral, WG's tone is not.

Think there are increasing signs of confidence on the part of UKOG (or maybe the confidence was always there and it's just becoming more visible).

It's clear that the government (along with a good number of other governments) has become far more conscious of the need for energy security in the recent past, for obvious reasons.

That requires a more positive and helpful approach towards the industry (and most certainly not another tax on "surplus" earnings).

Interesting, news.

Your posts have prompted me to pull up drill or drop's article of 2 days ago, 09/03:

UKOG said:

“The future use of the Broadford Bridge site will be determined by the appraisal of data from either one of the following well sites [Horse Hill and Loxley] targeting the same geological formations.”

https://drillordrop.com/2022/03/09/ukog-seeks-two-more-years-at-broadford-bridge-oil-site-for-data-review/

https://www.theice.com/products/910/UK-Natural-Gas-Futures/data?marketId=5253318

There's a price for the Winter 26 contract: 73.000p - that is a more modest price than those for the near and medium terms.

It's not the old contracts that pose a problem, it's their renewal.