Page 11 - EurOil Week 11 2022

EurOil POLICY EurOil

Sturgeon says extra North Sea oil

and gas not solution

SCOTLAND SCOTTISH First Minister Nicola Sturgeon has Europe’s dependence on Russian oil and gas.” He
said that ramping up North Sea oil and gas pro- acknowledged that climate targets were impor-
Sturgeon opposed duction is not a short-term solution to Europe’s tant, but said that “Russia’s war has changed the
the Cambo oilfield significant dependency on Russian gas. situation and we need to accept that.”
development. The UK and US are banning imports of Rus- “Scotland could strike a blow to Vladimir
sian oil, while the EU has ambitious plans to Putin by increasing domestic oil and gas produc-
reduce its use of Russian gas by two thirds within tion,” he continued. “We could increase that pro-
a single year, in light of Moscow’s invasion of duction now, we could end the need to import
Ukraine. The Scottish Conservatives have called foreign gas and export more to reduce foreign
for North Sea production to be raised in order reliance on Russia. It’s time to be practical and
to help replace Russian imports. But Sturgeon realistic.”
said it would take years to launch new oil and Downing Street has also indicated that a
gas fields. revival of shale gas development might also be a
The best strategy, she said, is to “accelerate the solution the government will consider.
transition away from fossil fuels.” She also called Urging Sturgeon to alter her position, oil
on the UK government to take steps to shield and gas association OEUK has stressed that
households from soaring energy prices. “to deliver a fair and managed transition that
Sturgeon notably opposed the develop- also ensures security of energy supply, we need
ment of the large-sized Cambo oil and gas both rapid investment in renewable energy plus
development West of Shetlands because of investment to sustain the production of oil and
its climate impact. And while not explicitly gas.”
linked to her comments, Shell shortly after- North Sea output continues to decline, and
wards announced in December it was with- so the UK’s reliance on imports will only grow
drawing from the project. In spite of surging unless there is fresh investment, OEUK warns.
oil and gas prices, Shell said at the time that “The UK offshore industry is changing and
the economic case for Cambo was not suffi- is already investing in renewable fuel and tech-
cient and there was a potential for delays. The nology to harness power from wind and hydro-
project had been the target of a prolonged cam- gen to help decarbonise energy in the medium
paign by environmentalists. to long term,” CEO OEUK Deirdre Michie
Sturgeon’s position on North Sea oil and gas is said. “But in the short term it remains the case,
in contrast with that of UK Prime Minister Boris whether we like it or not, that 85% of UK homes
Johnson, who has stressed the need for extra are reliant on gas, while 32mn vehicles on the
domestic oil and gas to curb Russian imports and road continue to require petrol and diesel for
bring down energy prices. He is due to present a transport needs.”
revised energy strategy in the coming days. “Our industry is essential in helping provide
Scottish Conservatives leader Douglas the UK with cleaner oil and gas while underpin-
Ross agrees, arguing that projects like the ning the energy transition – the two are inextri-
mothballed Cambo field could “help reduce cably linked,” the association said.™

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