Page 7 - EurOil Week 47 2021

EurOil COMMENTARY EurOil

Acorn CCS and the
Scottish Cluster project.

movement.” Criticism from industry
Revenues from Cambo would be used to Sturgeon’s words also prompted criticism from
finance a “just transition” from oil and gas, and the oil and gas industry. The OGUK group said
a condition could be set that the project is only that without new field developments, the coun-
approved if it produces net-zero emissions. try’s dependency on imported oil and gas could
“The only way that can be achieved is to help reach 75% by the end of the decade.
finance carbon capture,” he said. “This is the sort “The UK’s offshore oil and gas industry is
of development vision which engages Scotland’s committed to helping the UK government meet
resources for the benefit of our people and the its ambitious net-zero goals. We accept all the
plant.” science around climate change and the need to
The SNP responded to Salmond’s comments, cut emissions, but this transition must be man-
stating that “it is time for politicians of all colours aged,” OGUK CEO Deirdre Michie explained
to get real on the climate emergency.” in a statement. “If we cut our own supplies of
“Our journey to tackling climate change gas and oil faster than we can reduce demand
involves a Just Transition away from fossil fuels,” then we will have to import more of what we
a spokesperson said. “Mr Salmond would do need. Our import bills will go up without any
well to put the same effort into demanding an reduction in emissions. That means we need to
answer as to why the Tory UK government develop new oil and gas reserves simply to main-
snubbed investment into carbon capture in the tain domestic production.”
north-east, which would have brought a share of OGUK estimated that oil and gas delivered
GBP1bn of investment and secured tens of thou- 73% of UK energy, including 78% of Scottish
sands of jobs in the area.” energy. The country has already seen domestic
Scotland’s decarbonisation efforts suffered a production drop nearly threefold in the last 20
major setback in late October, after the UK did years, and this decline will continue whether or
not select the Acorn carbon capture and storage not new projects go ahead, the group warned.
(CCS) project near Aberdeen for state funding In the first half of this year, the UK got
and other support. Instead, it chose two projects GBP5.2bn ($7bn) of gas and GBP6.1bn of oil
in the north of England while listing Acorn CCS from Norway, GBP524mn of gas and GBP3.2bn
as a reserve option. of oil from Russia, GBP675mn of LNG from
A number of companies in Scottish industry Qatar and GBP2.8bn of oil from the US.
are counting on Acorn CCS to fulfil their decar- “Cambo is one of a number of discoveries
bonisation ambitions, and on a national level, which could help meet those needs and which
the project is expected to play a key role in the are now only awaiting approval by regulators
government’s plan to reach net-zero emissions and formal sign-off by the government,” OGUK
by 2045. said. ™

Week 47 25•November•2021 www. NEWSBASE .com P7