Page 7 - EurOil Week 36

EurOil COMMENTARY EurOil

Northern North Sea
licence awards. Source:
OGA.

Central North Sea licence awards.

West of Shetlands
licence awards.

Southern North Sea licence awards.

comes from renewables, oil and gas are still
needed for heating, cooking and transport, and
prospect. Recoverable gas reserves at the sites are for producing everyday essentials like medi-
estimated by Corallian at 2.3 bcm and 3.0 bcm cines, plastics, cosmetics and household appli-
respectively. They also hold 1mn barrels of con- ances, the government said. It also stressed the
densate each. oil industry’s economic contribution, support-
Corallian’s third win is in the northern North ing 270,000 jobs and generating GBP330bn
Sea (NNS), near one of its assets, and contains ($440bn) in production taxes alone.
the 10-20mn barrel Oulton oil discovery and the “While we have decarbonised our econ-
37mn barrel Oulton West prospect, along with a omy faster than any other major country over
620mn cubic metre gas prospect. the past two decades, the oil and gas sector will
continue to be needed for the foreseeable future
Licensing policy as we move towards net zero carbon emissions
In a statement, the OGA said it would take a by 2050,” Business and Energy Secretary Alok
break from licensing so that future rounds would Sharma said in a statement. “Our review into
be more effective. future oil and gas licensing rounds will ensure
“This will allow relinquishments to take we are able to meet our net zero target, while
place so more coherent areas may be reoffered protecting jobs across the country as part of our
in the future, giving industry time to deliver on plan to build back better with a greener, cleaner
work commitments in the existing portfolio of economy.”
licences,” it said. The government noted that even the inde-
The industry should use this time to acquire pendent Committee on Climate Change (CCS)
more data and undertake more studies in prepa- foresaw oil and gas playing a role in any sce-
ration for the next contest, it said. nario where the UK meets its 2050 goal. What
Meanwhile, the government has announced it did not say was that the very same commit-
a review of its oil and gas licensing policy amid tee warned in a report last year that the UK was
efforts to reach its binding goal of net-zero emis- falling behind its climate promises because of a
sions by 2050. But it also made clear it saw a lack of policies. It warned that the country could
future for oil and gas for decades to come. Initial even fail to deliver on its previous, more modest
findings from the review will be made available target of an 80% cut to emissions by 2050 versus
in its upcoming Energy White Paper. a 1990 baseline. Emissions were only 40% lower
Even though the majority of UK power now last year than three decades ago. ™

Week 36 10•September•2020 www. NEWSBASE .com P7