Alternative technologies and the rising cost of energy

There is no doubt that future fuel costs will be higher than at present in real terms. This is not just because oil and natural gas will command scarcity prices as supplies are restricted or depleted. It is also because substitutes for oil and gas such as SNG and electricity are more highly processed fuels and are therefore more expensive therm for therm. Some improvement of this situation will be achieved by spending more on systems for using these fuels more efficiently, and by insulation: but total annual costs will still be considerably greater than at present. This is also true for renewable technologies.