Over the past twenty years, the percentage of electricity derived from natural gas has increased from 1% in 1990, to 39% today. This is due to a variety of different factors, although the presence of North Sea gas and increased environmental awareness are perhaps the most important. Companies are therefore increasingly reliant upon natural gas, and energy prices are dependent upon its availability. The UK is currently the world’s third largest user of natural gas, meaning that one of the biggest historical changes has been the increased demand.

The fluctuating nature of coal and oil prices has made gas seem like a more stable alternative. Added into this is the need to transport oil and coal, both of which are relatively dense materials to move. By contrast, the fact that gas can be harnessed from the North Sea means that there are relatively few costs involved in the transport of natural gas.

This has led to reliance, or perhaps dependence, on natural gas, as it has come to make up a significant proportion of the total electricity produced. As stocks in the North Sea have declined, however, the UK now imports much of its natural gas. In effect, the demand now needs to be fulfilled from abroad. The decline in the domestic coal mining market, as a direct result of the use of cheap gas, has left Britain with a relative energy crisis, whereby the country no longer is able to produce all of its own energy. Although this is not too problematic, it means that the UK will have to maintain good relations with gas providers in order to maintain stable prices.

Increasingly, the UK will become reliant on other countries to supply its natural gas. The biggest exporters to the EU are Norway, Russia and Algeria. Norway is the closest and therefore the most feasible, although Russia has the largest natural gas reserves in the region. Prices of natural gas will soon, therefore, be dependent upon foreign governments. Thus, business gas prices are set in the long-term to become less stable, unless some alternative can be found. At the moment, however, business gas prices are relatively stable and will remain so unless the UK's relationship with the various gas providers deteriorates.

Thus, historical changes in the use of gas and the demand for it have been driven by domestic production. This was first marked by the rise, and then the fall, of British natural gas capabilities.

Fiona Roy writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.