By : Franyi Sarmiento, Ph.D., Inspenet, June 7, 2022
Shell Plc has obtained official consent to develop the Jackdaw natural gas field in the UK’s North Sea, eight months after the country’s regulator blocked the project over environmental concerns.
The move marks a change in government policy from last year, when the UK oil and gas industry faced a bleak outlook as the government focused on organizing the COP 26 climate talks. (Conference of the Parties). But with energy prices skyrocketing from the shock of the Russia-Ukraine war, Britain is now looking for ways to keep domestic oil and gas resources flowing.
In a new environmental statement filed in March, Shell said it would reduce ventilation and change a treatment process at Jackdaw, which would reduce the amount of emissions from the project.
The UK’s environment and decommissioning offshore oil regulator approved the project saying it “will not have any significant effect on the environment,” according to a letter dated May 27.
Shell welcomed the news, saying it plans to “move forward with the project, which has the potential to produce 6.5% of UK gas production at a time when UK energy security is a requirement.” critical”.
“The Jackdaw gas field, originally authorized in 1970, today received final regulatory approval. We’re pushing renewables and nuclear power, but we’re also realistic about our energy needs now. Let’s get more of the gas we need from British waters to protect energy security.”
New oil and gas projects in the UK North Sea have declined in recent years as investors urged the industry to cut spending and environmental campaigners pressured it to tackle climate change.
While the government announced a 25% windfall tax for oil and gas companies last week, the proposal also includes an 80% allowance for new investment, meaning energy companies can reduce the amount they pay if they commit to new capital expenditures on energy projects.
A Shell spokesman said local gas would be a key part of the UK’s transition to zero CO2 emissions and is part of its plans to invest up to £25bn in the country. “However, as we have repeatedly said, this can only happen with stable fiscal policy and we continue to look to the government for those guarantees.”
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