Analysts are Becoming More Confident About How Brexit Will Affect the U.K.’s Energy Market

If and when the United Kingdom finally withdraws from the European Union, plenty of momentous developments are certain to ensue. While plenty of effort has been put into pinning down the most likely effects of Brexit, uncertainty regarding many crucial issues is still very much the norm.

Fortunately, the most probable future outlines of certain particularly significant Brexit-related developments are starting to become clearer. An article available online here, for instance, details the conclusions experts have arrived at regarding how Brexit is likely to impact the commercial energy market in the United Kingdom.

A Web of Dependence Soon to be Disrupted by Brexit

The North Sea that lies to the east of Great Britain has been a famously productive source of petroleum for many years. Companies like the one formerly known as British Petroleum have extracted many billions of dollars’ worth of oil from beneath the frigid waters of that part of the Atlantic Ocean.

Despite this fact, the United Kingdom has come to rely on energy-related commodities produced by other nations. An increasing emphasis on cleaner methods of generating electricity, for instance, has seen the nation consuming more and more natural gas originating in places like Norway.

As a result, the supply lines that keep the lights on throughout the United Kingdom have become fairly tangled and interwoven in recent years. While Brexit will undoubtedly give rise to plenty of other shakeups, many experts expect its impact on domestic energy generation and supply to be especially profound.

Several Distinct Issues are to be Expected

In fact, analysts have increasingly been predicting that Brexit will upset existing energy arrangements in at least a few ways. Some of those that are most likely to attract notice relate to important issues like:

  • Costs. Above all else, withdrawing from the European Union is likely to make it more expensive to obtain natural gas and other types of fuel.
  • Reliability. Experts also expect that it will become more difficult to guarantee consistent supplies of the resources that energy generation plants and the like need.
  • Environmental impact. Any increase in the difficulty of obtaining natural gas could cause the U.K. to regress to heavier use of less environmentally friendly fuels.

Energy-related issues like these seem increasingly likely to impact the United Kingdom after Brexit. Some disruption and adjustment is to be expected.