by P. Homewood, March 7, 2019 in NotaLotofPeopleKnowThat
The renewable lobby often claims that the rising cost of fossil fuels will help make renewable energy competitive.
However, oil and gas prices remain stubbornly uncooperative. Gas prices in particular are back down to levels seen last spring, after peaking last autumn.
As is usually the way, power prices have followed the same pattern.
Oil and gas are very much cyclical markets. When supply is tight, prices rise, thus attracting more investment to increase production.
Prices therefore fall, cutting profitability and new investment, and setting the whole cycle back in motion again.
How long supply can keep meeting ever rising demand is a moot point. But there is little sign of anything changing in the foreseeable future.