Page 4 - EurOil Week 37 2022

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COMMENT
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EurOil COMMENTARY EurOil

Truss vows to maximise the

UK’s oil and gas potential

Truss is largely following the same policy of her predecessor, but she has
gone further in announcing an end to the ban on shale gas extraction

UK THE UK’s new prime minister, Liz Truss, has “Millions of families and businesses across
sought to differentiate her energy policy from the country can now breathe a massive sigh of
WHAT: that of her predecessor Boris Johnson, vowing relief, safe in the knowledge that the govern-
UK Prime Minister Liz that her government will learn from “the mis- ment is standing behind them this winter and
Truss’ government has takes of the past.” the next,” new Chancellor Kwasi Kwarteng said
announced a new energy Truss formally became the UK’s leader on in a statement. “The price of inaction would have
policy. September 6, after comfortably winning a two- been far greater than the cost of this interven-
month leadership contest, besting former chan- tion. Not only can we provide urgent support
WHY: cellor Rishi Sunak. A hot topic in the race was now, but the beauty of our scheme is that it will
The policy largely mirrors soaring energy bills for households, with both also bring down inflation, helping tackle wider
that of her predecessor, leading candidates facing calls to freeze the cost of living pressures.”
but goes further on cap on energy costs – something that Johnson’s The fresh support adds to the GBP400 energy
shale gas extraction and administration had resisted. Both Truss and bill discounts already provided to all households
freezing energy bills. Sunak had rejected freezing the energy price cap already. The government has said it will boost
during voting. economic growth, curb inflation by four to give
WHAT NEXT: points and boost efforts to service the national
Local and Energy bill freeze debt.
environmentalist Now in power, however, Truss’ government
pposition to upstream announced on September 8 that house- The roots of the problem
projects -- both holds would pay no more than an average of Truss’s government also pledged to tackle the
conventional and GBP2,500 ($2,926) annually for their energy root causes of the current energy crisis. While
unconventional -- could until 2024, down from a cap of GBP3,549 per this crisis is global in scope, and has been exac-
remain an obstacle. year that was set to be introduced next month. erbated by Russian cuts to gas supply to Europe,
Similar support will be provided to businesses the government said that the situation had ex-
and public sector organisations over the winter, posed vulnerabilities in the UK energy system.
the government said. It will be partially imple- “Decades of short-term thinking on energy
mented by removing green levies on bills, cur- have failed to focus enough on securing supply –
rently at GBP150 annually. with Russia’s war in Ukraine exposing the flaws

P4 www. NEWSBASE .com Week 37 15•September•2022