Energy Security And Drilling Rights

The March 2014 Ukraine crisis has once again focused European attention on the risks of excessive reliance on Russian gas supplies. Since 2003, European Union member states have gradually reduced their dependence both on Russian gas and on the Ukraine as a route for gas pipelines. Europe now imports just under 30% of its gas from Russia, compared with 45% in 2003. Improved infrastructure also offers alternative routes, such as the Baltic Nord Stream pipeline, and greater resilience. Nonetheless, a 10% increase in gas futures prices in immediate response to the Ukraine crisis must add to pressures on the UK and other governments to promote energy security as a major policy objective. While there are some significant alternative energy projects in distant prospect, such as the Swansea Bay Tidal Lagoon project, for which planning consent was sought in February 2014, fossil fuels remain an essential element in the UK's energy mix.