Shell’s withdrawal from Cambo, an oil and gas exploration off the Shetlands, could have huge consequences for British businesses and consumers.
It will lead to higher energy costs and inflation, already forecasted to increase at 5% in 2022. The UK will also have to import oil from more insecure countries.
Royal Dutch Shell might be able claim the top spot in the fight to become more environmentally-friendly. It is however engaged in virtue signalling that is unlikely to make any difference to the reduction of carbon emissions within Britain and around the globe.
Under UK government-sanctioned plans to exploit the field, Shell had planned to take a 30 per cent stake in the Cambo project.
Shell’s withdrawal from Cambo, an oil and gas exploration off the Shetlands, could have a huge impact on British consumers and businesses. This will lead to rising energy prices and increased inflation (already predicted to rise by 5% in 2022), as well as requiring the UK to import additional oil from unsecure sources.
Royal Dutch Shell might be able claim the top spot in the fight to become more environmentally-friendly. It is however engaged in virtue signalling that is unlikely to make any difference to reducing carbon emissions, either for Britain or elsewhere. Friends of the Earth activists have called for an end of all new North Sea oil and gas development.
Shell was seen to be a key investor and been essential for ensuring the development and drilling were done in accordance with the highest standards of safety and emission.
British oil giant withdraws in face of Greenpeace’s threat to sue, a lackluster support from Scotland’s First Minister Nicola Sturgeon, and the pressure of big battalion shareholder who are modifying their stance on climate.
Shell may be replaced in this project by an alternative explorer.
However, the environmental and political hurdles that have been set up by oppositions to domestic fossil fuel production make it difficult for investors to fight the naysayers.
It is way too soon to bet on renewable energy, as all the evidence suggests from the autumn’s energy crises.
Almost every single British nuclear power plant – and nuclear is currently the energy source for around 20 per cent of our electricity – is close to the end of its life.
British oil company withdraws in face of threat from legal action by Greenpeace. It also faces a shortage of support from Scotland’s First Minister Nicola Sturgeon, and pressure from major battalion shareholder who have stepped up their climate change stance. (Below, Greenpeace activists outside Downing Street protesting the Cambo oilfield.
This leaves the UK dangerously dependent on the wind blowing, the sun shining – and on imported oil and gas.
This is what we saw in September and Oct.
Because of a worldwide shortage, many oil and natural gas tankers headed to the UK were diverted into China and the Pacific to meet the demand.
Gazprom, a state-owned Russian company, was transporting gas through Europe. However they were removed before reaching pipelines to Britain.
Additionally, power supplies were also disrupted by a fire at France’s interconnector.
This series of events underlined how important it is for the UK – which is still surrounded by rich oil and gas fields and sits on potentially unlimited sources of gas for fracking – to make use of these energy resources until newer fuel technologies such as green hydrogen, fuel cells and carbon capture can be brought to fruition.
Shell’s withdrawal from Cambo will be a significant victory for the green lobby.
It won’t, paradoxically. The oil from Nigeria and the Middle East will be shipped to the nation instead of being made locally.
Transport alone will make the world more carbon-intensive.
The UK will not reduce its energy consumption and Britain’s balance payments will continue to be affected.
The green lobby will see Shell’s exit from Cambo as a major victory. It will not, paradoxically, reduce the country’s carbon footprint. Instead of fuel being generated locally, oil will be shipped from Nigeria, Middle East, and other distant locations. (File image)