Future of North Sea oil uncertain as Shell terminates Cambo – .

Future of North Sea oil uncertain as Shell terminates Cambo – .

And the government is committed to continuing to support the oil and gas industry, as long as it also cuts emissions from production and invests in green energy such as hydrogen and carbon capture.

Yet as tensions around Cambo mounted as the UK approached the UK’s organization of the Cop26 international climate change conference in November, ministers halted ahead of a full-blast defense. Boris Johnson told Cop26 that we want to “go beyond oil completely in the UK, and do it as quickly as possible”.

Senior Shell officials are believed to have become frustrated with the UK government’s reluctance to give public support to Cambo. A Whitehall source, however, accused Shell of bowing to a “voice minority” of activists who blocked the projects.

In Scotland, meanwhile, Prime Minister Nicola Sturgeon has taken an increasingly vehement stance against fossil fuels as part of her power-sharing deal with the Green Party for independence.

Over the summer she called on the UK government to review approved oil and gas licenses while last month she said Cambo should “not be given the green light”. Scotland’s political signals are also believed to have played a significant role in Shell’s decision.

In October, Shell was even more disappointed when British regulators refused to approve its important Jackdaw development in the North Sea. “They can do these projects anywhere in the world – why would they do it somewhere where they are going to spend all their time fighting? An industry source said. Shell is revising its plans for approval.

It’s harder to predict whether the giant’s recent move signals greater caution towards the North Sea. An industry executive said it was “absolutely” still a great place to invest. Other sources echoed Sir Ian Wood’s warning about creating a harsh environment, also pointing out that this investment in cleaner energy is also at risk.

“It’s either an investment destination or not and you make that decision based on the stability of fiscal and regulatory policy,” an industry source said.

As everything unfolds, Kwarteng has a lot to think about.


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