The UK Chancellor, Rishi Sunak, has granted approval for numerous new oil and gas licenses in the North Sea, cementing the crucial role of oil and gas in the UK’s journey towards net zero emissions.
Today, the Prime Minister is scheduled to visit Aberdeenshire to announce these contracts and introduce new carbon capture initiatives. Fresh analysis indicates that the carbon footprint of domestic gas production is approximately a quarter of that of imported liquified natural gas.
Sunak emphasized the importance of these projects for the UK’s energy stability, especially in light of the ongoing conflict in Ukraine. He referenced a study by the independent Climate Change Committee, which forecasts that even after achieving the net zero target in 2050, the UK will continue to derive a quarter of its energy requirements from oil and gas.
Locations in North East Scotland and the Humber have been selected for the establishment of two new carbon capture usage and storage clusters, with the potential to support as many as 50,000 jobs.
Sunak expressed concern over the international manipulation of energy resources, exemplified by Putin’s tactics to disrupt supply chains and hamper growth globally. He stressed the importance of strengthening the UK’s energy independence in order to provide more cost-effective, eco-friendly energy to homes and businesses in the country.
The Chancellor further stated, “Even when we attain net zero by 2050, oil and gas will still meet a quarter of our energy requirements. Yet, some prefer to depend on supplies from hostile nations rather than utilizing domestic sources.
We have made the decision to energize Britain with British resources, investing in key sectors like carbon capture and storage, instead of relying on carbon-heavy gas imports from abroad. This strategy will create thousands of skilled jobs, offer more opportunities for green technologies, and stimulate economic growth.”
