Thursday, October 24, 2013

British fuel price super spikes

The genesis is workers strike in Britain.  Although the strike is the imitator of the concern, the situation highlights the tenuous nature of a lot of the built up oil/fuel infrastructure.
Steve Hawkes, The Telegraph, 18 October 2013 (hat tip: NC)
Motoring chiefs warned that the uncertainty over the future of Grangemouth reflected the growing concerns over the rest of the refining industry in the UK following the closure of Coryton in Essex last year. 
The AA said it feared that without an urgent action plan from Ministers, the country would soon be as reliant on imported fuel as it is on imported gas and electricity to keep the lights on. This could lead to "super spikes" similar to the one at the start of 2012, when speculators were blamed for pushing unleaded to a record of more than 140p per litre.
The AA's attack came as forecourts in Scotland were urged to build up stocks in the event Grangemouth remains shutdown beyond Tuesday.
Luke Bosdet, AA public affairs spokesman, said: "Grangemouth is a symptom of a bigger threat. There is a lot of talk of European refineries needing to close because of over capacity and because they are old.
Probably because of submarine blockades curtsey of the Germans during both world wars, the British authors do seem to understand the vulnerability of modern economy to scarcity.  U.S. authors seem to require something a bit more spectacular, or they are more inclined to view the financial system as a potential culprit.


Stephen said...

Or, the Americans just don't give a good damn. I hold little hope for this country. Nice work, Russell.

russell1200 said...

Stephen: I think we are too self assured, which is different than not caring. Of course the results wind up being much the same.