According to a new study, the UK portion of the North Sea could meet more of the country’s gas and oil needs.
The study was carried out by independent researchers from the Westwood Global Energy Group, having been commissioned by trade association Offshore Energies UK (OEUK). It found that compared to UK Government estimates, an extra 3.2 billion barrels of oil equivalent could still be produced domestically. This would take the total to 7.5 billion barrels and add £165 billion in additional economic value, for a total of £385 billion.
Due to concerns over downstream emissions, court rulings have delayed developments like the Jackdaw project of Shell, the maker of the Gadus grease and other lubricant ranges. Nevertheless, the Government’s advisory Climate Change Committee has pointed out that 13–15 billion barrels of gas and oil will still be consumed on meeting climate targets. Current expectations are that under a third of this will be met from the North Sea, necessitating imports.
David Whitehouse, the chief executive of OEUK, suggested that the Government should be pragmatic in its approach to UK energy production, with it potentially:
“…unlocking an additional £165 billion of economic value to the country, protecting 200,000 jobs and meeting our climate goals. This means supporting continued production gas and oil in UK waters and bringing forward changes to the windfall tax when the Government responds to key consultations expected this autumn.”
He also emphasised that prioritising homegrown gas and oil production would impact fossil fuel imports rather than domestic renewable capacity.
