Oil N Gas Essay

1382 WordsJun 3, 20136 Pages
1. Most of Britain's coal mines have closed down. There are still large reserves of coal available. Under what circumstances would you envisage businesses opening up coal mines and exploiting these resources? The answer to this question, however, has to do with the case of the oil sands and the concept of margin. The United Kingdom has much reserves of coal in some cases are not easy to find, but it is still possible to extract these reserves. The question is whether it makes economic sense to do so. The decline of the coal industry in the 1980s and the closure of many mines on the basis that the cost of extraction of coal was too expensive considering the way made the world changing market. It was a movement to generate electricity from gas instead of coal, and coal from places like Poland was imported much cheaper. It is generally recognized, however, that the industry itself had a long way to improve productivity come and that's what really upset many miners - they had contributed to more efficient mines felt done. Could it be that the world changed again. The UK will become a net importer of oil and gas, North Sea supplies begin to decline and then more dependent on gas supplies from the likes of Russia. Gas prices are already rising, so this and the progress of technology is changing the relationship between marginal cost and marginal revenue coal. Coal power is currently only 28% of electricity generation in the UK, 4% more than last year, the latest government figures.While gas consumption is rising and now accounts for 44% of electricity generation.In 2003 the UK produced 28.2 million tons of coal only - withdrawn less than 10% of the amount in 1900, when fed the strength of the British manufacturing and heavy industry.The current production of coal in Great Britain and imports to 31.9 million tons in the United Kingdom exceeded.There are only nine fully

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