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My children are keen participants in the winter kilowatt orgy. Banishing the dark corners on the stairs (where monsters hide), they throw every switch and bathe the house in glorious, comforting light. Curmudgeons (guess who) grumble at the cost of it all, and those more public-spirited give warning of the wider consequences of energy profligacy — global warming, shortages, political conflict and wars fought for oil.
Events this week reminded us how much needs to be done if we are to win the struggle for light over darkness. The Government gave the go-ahead for two wind-power developments in the Thames Estuary. Together, the London Array and the Thanet wind farm will generate 1.3 gigawatts of power, enough to power a third of the households in London on a breezy day.
Further north, more conventional energy is being gathered in preparation for the struggle ahead. Two Norwegian firms, Statoil and Norsk Hydro, announced a merger worth $30 billion (£15.3 billion) that brings together giants in offshore oil development. This Nordic supercompany will be a key player in developing the world’s last and biggest oil and gas province: the Arctic Circle.
There is a wider and more political reason for the Norwegian merger that will put the country’s oil and gas industry firmly in government hands, with two thirds of the new company’s stock in state control. Governments everywhere are moving quickly to get their hands on hydrocarbon resources. From Algeria to Bolivia and Venezuela, the state is reasserting control, raising taxes, rewriting ownership rules and nationalising assets.
Angola agreed to join Opec, the oil producers’ cartel, this month, and Gazprom is about to gain control of Sakhalin-2, the world’s biggest gas project, from Royal Dutch Shell. The Russian utility is on a commercial and political drive to extend its influence, both at home and abroad. Latterly, it has tied up the main gas suppliers in Germany, Italy and France with supply agreements and the promise of asset swaps or joint developments. Closer to home, Gazprom twists arms in the former Soviet republics, demanding gas price increases or, alternatively, control of gas transit pipelines. Ukraine and Moldova have succumbed; Belarus and Georgia are in its sights.
Europe needs a strong Norwegian oil and gas industry in the West to counterbalance the growing power in the East. The European Commission probably will overlook the accumulation of market share represented by the combined Statoil-Norsk Hydro’s control over gas shipments from Norway’s continental shelf. Within the Brussels competition directorate there is a tacit acceptance that Europe needs bigger utilities. It has no liking for national champions, but the Commission accepted Suez-Gaz de France, even if the French unions are intent on wrecking it.
Norway’s energy might has come to Britain’s rescue in the nick of time with Langeled, a new gas pipeline that should ensure, barring accident, that our lights will not flicker next month or in a decade of winters to come. Beyond 2018 Norway’s guarantee of winter illumination from gas is less certain than its promise of an annual Norwegian spruce to decorate Trafalgar Square.
The British Government’s confidence in the capacity of wind turbines to deliver 20 per cent of our power is quaint but not reassuring. When high-pressure zones settle over Northern Europe, delivering brilliant starlit nights with intense chill or sweltering August dog days, the London Array will not help us.
We need back-up. That means nuclear power, but which government minister is actively promoting new reactors? Where is the nuclear waste to be stored? Who is considering the planning process and how will it be accelerated? We need these reactors within a decade.
It is easier for a government in limbo to promote offshore wind turbines. Many people prefer renewables and advocate conservation, insulation and a lighter foot on the accelerator, but history is not on their side. Civilisation is about illumination. Christians who dress trees with lights are tapping into something that is quite fundamental. Jews light Chanukah candles and Hindus celebrate Diwali with lights.
We are scared of the dark and, if our children are to be kept safe from the monster on the stairs, something must be done.
carl.mortished@thetimes.co.uk
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