Oil, gas and fracking key to UK’s green goals, says climate minister
Domestic fossil fuel projects including oil, gas and fracking are both good for the environment and energy security, argued the new Climate Minister, Graham Stuart.
He told the House of Commons Environmental Audit Committee the country needed to “produce more energy ourselves”, with the uK aiming to be a net exporter by 2040.
This meant not just a ramp up in renewables and nuclear, and also`”further domestic oil and gas production.”
Stuart confirmed the Government was still committed to its 2050 net zero target, with Downing Street establishing a review of the climate goal as it looks to make the best business case for it.
Nevertheless, he believed that hydrocarbons remained essential for the transition to a greener future.
In his view, granting new oil and gas licences was “good for jobs and good for the economy and it is good for the environment,” as production and usage would still decline over time.
Meanwhile the emissions associated with extracting North Sea oil and gas were lower than those associated with bringing in supples from overseas.
The Government has revived fracking following a three year moratorium following safety concerns over tremors, and has greenlit a new licensing round for oil and gas exploration in the North Sea.
The North Sea Transition Authority (NSTA) is expected to divvy out 100 licences to companies for North Sea drilling, covering over 900 locations between now and the closure of the bidding process in January.
He said: “It’s always the danger that people try and suggest you should switch over to renewables tomorrow morning and if you don’t, you don’t care about the environment and you’re not committed to net zero.”
The minister rubbished Labour’s pledge to completely decarbonise the energy sector by the end of the decade, warning that such a move would be “putting the lights out” for people and business, and drag people into poverty.
Industry warns of dwindling oil and gas supplies
The UK produces around 45 per cent of its gas domestically – and relies on Norway as its chief overseas partner, which meets 38 per cent the country’s gas needs.
The Climate Change Committee, Westminster’s independent advisory group, predicts half of the UK’s energy requirements between now and 2050 will still be met by oil and gas, and as much as 64 per cent of UK energy needs between 2022 and 2037.
The UK is a mature basin, the and the NSTA has warned in its resources report that without further exploration the UK faces a cliff edge in production decline and increased reliance on imports.
OEUK recently published its economic report on the sector, which revealed that just five exploration wells were drilled last year.
This was the lowest total since the North Sea sector was opened up to development nearly 60 years ago.
However, the offshore body currently has sight of around £26bn of capital investment opportunities at various stages by 2030.
If all are progressed, this could deliver more than 4bn barrels of oil and gas (37 per cent gas and 63 per cent oil) by the end of the decade.