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A recent analysis has revealed that oil production from the contentious North Sea projects, which includes the highly debated Rosebank venture, will only fulfill less than one percent of the UK’s fuel demands by 2030.
On Monday, the non-profit organization Energy and Climate Intelligence Unit (ECIU) released research stating that the government’s assertion of improving the UK’s energy security with new licenses “fails to hold up under examination.”
According to the research, by 2030, only 1% of the oil produced from recently granted drilling licenses, including for projects such as Rosebank – the UK’s biggest untapped oil reserve – would be utilized within the UK.
Therefore, there will be no significant impact on energy prices in the UK.
According to Professor Gavin Bridge, a member of the Durham Energy Institute at Durham University, only a small amount of the oil extracted from the North Sea is processed and sold in Britain. Additionally, the price of this oil is mostly determined by global markets.
The majority of oil is obtained by privately owned or foreign state-owned companies, which the Government has minimal authority over,” he stated.
The idea that increasing drilling on the continental shelf improves our energy security cannot withstand examination.
The government acknowledged in a written response to a parliamentary question last week that the majority of oil extracted from the North Sea, approximately 80%, will be sold on the global market instead of being used by consumers in the UK.
The statement expressed concern about mandating private companies to allocate North Sea oil and gas for domestic consumption.
According to ECIU, the recently introduced licenses are diverting attention from more effective policies that could truly contribute to the UK’s energy independence.
The government has acknowledged that oil from new fields like Rosebank will be sold on the global market, rather than being reserved for the UK. This means that it will not have a significant impact on prices in the UK.
According to a study by ECIU, which analyzed government data on oil production and projections from the North Sea Transition Authority (NSTA) and oil demand, it is shown that the extraction of oil from UK waters is becoming less significant in terms of energy independence and security for the UK.
The examination is happening as the government plans to suggest a fresh legislation in the House of Commons on Monday, advocating for yearly issuance of oil and gas permits rather than every five years.
The ongoing efforts of the Rishi Sunak administration to extract oil from the environmentally fragile North Sea area have been closely examined, sparking criticism from environmentalists, opposing parties, and even members of the conservative party.
Environmental activists have strongly opposed Rosebank.
In October, climate activists, led by Greta Thunberg, protested in various areas of London against the Rosebank project. This project has the capacity to generate 500 million barrels of oil during its lifespan, which, once burned, would release the same amount of carbon dioxide as operating 56 coal-fired power plants for a year.
Last week, two organizations, Greenpeace and Uplift, revealed their individual legal objections to the plan. These objections are set to be reviewed in the coming months.
The government is still moving forward with allowing companies to drill in the North Sea, citing concerns about energy security.
In a BBC interview on Saturday, Chancellor Jeremy Hunt stated that despite reaching net zero in 2050, a considerable amount of our energy will still come from fossil fuels. He also noted that domestically sourced oil and gas is four times less polluting than imported sources.
Piers Forster, the temporary chair of the CCC, responded to his statement by tweeting: “Our previous advice is still relevant. In order to meet UK targets, oil and gas consumption must be reduced by more than 80%. This, along with the Cop decision, makes it incompatible to continue with further licensing in accordance with climate goals.”
In September, Prime Minister Rishi Sunak stated that Rosebank would aid in avoiding young individuals from becoming reliant on foreign dictators for energy security.
A representative from the Department for Energy Security and Net Zero informed the PA news agency that due to volatility in energy markets, it is logical to utilize our resources in the North Sea.
“We are supporting the UK’s oil and gas industry by granting annual licenses, which will create and sustain 200,000 jobs. This will also provide them with the assurance to invest in local jobs and generate significant tax revenue for our transition towards clean energy.”
The UK is a net importer of oil and gas, meaning it uses more than it produces. These newly granted licenses will not turn the UK into a net exporter nor will they exceed the legally binding carbon budgets.
Source: independent.co.uk
