The economy and the environment will both be top of the agenda in 2012. Barney Gray from Old Park Lane Capital, the UK’s leading dedicated natural resource broker, has offered his expert views on some of the stories that have circulated this year.
Barney Gray, Head of Research at Old Park Lane Capital, said: “With economies struggling and our high dependence on energy it’s really important that policy makers base important decisions on scientific fact.”
Barney offers an expert insider view on some of the most controversial stories. He says:
- Resource explorers are NOT going to drill popular beauty spots or mine under historic buildings in the UK: World consumption of oil is over 80 million barrels a day. Stories about ‘a million barrels’ of oil being found in beauty spots or under historic buildings are scare stories as it would never be worth trying to recover such small amounts of oil. Also, in any new oil field, only 30% of the oil is recoverable at best and permission to drill would be unlikely to ever be granted in vaguely sensitive areas of the UK.
- Electric cars will not save the environment: The internal combustion engine is still the most energy efficient way to power a car. Electric cars are more environmentally friendly by comparison on an end user basis. However, the electricity they use is produced by power stations, over 90% of which combust hydrocarbons (predominantly gas and coal) or are nuclear powered in the UK. Therefore, it is highly disingenuous to say that electric cars are more environmentally friendly than traditional cars.
- Fracking for tight gas does not cause earthquakes or contaminate the water supply: Hydraulic fracking, which involves the fracturing of hydrocarbon bearing reservoirs deep below the earth’s surface using high-pressure liquid, has been blamed for causing earthquakes and contaminating the water supply. However, this is largely a scare story as oil and gas deposits are typically thousands of feet below the water table separated by layer upon layer of totally impermeable rock. Additionally, the impact of highly controlled fracking of oil and gas bearing horizons is seismically insignificant and is unlikely to register to the human senses.
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Notes to Editors:
Old Park Lane Capital PLC have two separate but complementary divisions:
- Corporate broking and research
- Institutional and invitation only agency stockbroker
The corporate broking and research service is focused exclusively on natural resources. OPL analysts are specialists with unrivalled expertise in there sectors. OPL offer a turnkey brokerage solution.