Six months after being rejected by the environment regulators, Shell has presented new plans to create a large gas field in the North Sea. This will help Britain reduce its dependence on foreign suppliers.
According to FTSE 100, the Jackdaw Field, located about 250 km east of Aberdeen, should be operational by 2025. It could make a significant contribution to the UK’s energy security and be developed with low carbon emissions.
This submission is made as the Government encourages UK producers to increase output to and reduce dependence on Russian oil & gas.
Sky News reported that Boris Johnson will meet with executives from nuclear power companies, such as EDF, Westinghouse and Rolls-Royce on Monday to discuss ways to increase Britain’s energy independence.
Shell claimed it was “disappointed” last October by regulators rescinding its Jackdaw plans. This was just days before the UK was scheduled to host the Cop26 climate conference in Glasgow.
Two months later Shell pulled away from the Cambo major Cambo proposal development west Shetland. This had become a hotbed for anti-fossil fuel campaigners.
The company blamed a weak economy case and “the potential delays” – which was widely understood as a reference to possible legal and regulatory entanglements.
Shell submitted a submission on Jackdaw to Oil and Gas Authority. It stated: “We have been and remain determined to minimize the environmental effects from the Jackdaw construction project, including by reducing the atmospheric emissions.
“The Jackdaw Project will be part of an integrated system that makes a significant contribution towards UK energy security and which Shell is working towards recycling to reduce future greenhouse gas emissions.”
The UK produces about half its gas domestically, with the remainder imported from Europe and Norway via pipelines.
Only 3pc of UK’s gas is imported directly from Russia. Kwasi Kwarteng (the Business Secretary) wanted to ban all Russian gas imports.
The US and UK have banned imports from Russian oil, and Johnson wants the EU to do the same.
Rishi Sunak, however, has warned that an EU-wide ban on Russian oil and gas could lead to a recession in many countries, including the UK, and slash 3% off the British GDP, according to the Financial Times.
The government has had to intervene in order to ease the blow of rising energy bills due to high wholesale gasoline prices. Households are entitled to a £150 rebate for council tax and a £200 discount on energy bills.
In response to Mario Draghi, prime minister of Italy, Eni, which is controlled by the Italian government, said that it would increase its oil-and-gas production in Africa.
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