Oil on course for biggest monthly gain since early 2022 - The Telegraph
Oil on course for biggest monthly gain since early 2022
Hundreds of new North Sea oil and gas licences have been approved as Rishi Sunak makes fossil fuels a firm part of Britain’s “transition to net zero”.
The Prime Minister will travel to Aberdeenshire today to unveil the contracts and new carbon capture projects, as he said a quarter of Britain’s energy needs will be met by oil and gas even if Britain meets its net zero targets by 2050.
Mr Sunak said the projects were vital for Britain’s energy security amid the war in Ukraine and pointed to new analysis showing domestic gas production has around one-quarter the carbon footprint of imported liquified natural gas.
North East Scotland and the Humber have been chosen as the locations for two new carbon capture usage and storage clusters, which could support up to 50,000 jobs.
Mr Sunak said: “We have all witnessed how Putin has manipulated and weaponised energy – disrupting supply and stalling growth in countries around the world.
“Now more than ever, it’s vital that we bolster our energy security and capitalise on that independence to deliver more affordable, clean energy to British homes and businesses.
“Even when we’ve reached net zero in 2050, a quarter of our energy needs will come from oil and gas. But there are those who would rather that it come from hostile states than from the supplies we have here at home.
“We’re choosing to power up Britain from Britain and invest in crucial industries such as carbon capture and storage, rather than depend on more carbon intensive gas imports from overseas – which will support thousands of skilled jobs, unlock further opportunities for green technologies and grow the economy.”
The commitment for hundreds of new oil and gas licences in the North Sea will “drive forward our energy independence and our economy for generations”, Energy Security Secretary Grant Shapps has said.
Mr Shapps said in a statement:
In the wake of Putin’s barbaric invasion of Ukraine, our energy security is more important than ever. The North Sea is at the heart of our plan to power up Britain from Britain so that tyrants like Putin can never again use energy as a weapon to blackmail us.
Today’s commitment to power ahead with new oil and gas licences will drive forward our energy independence and our economy for generations.
Protecting critical jobs in every region of the UK, safeguarding energy bills for British families and providing a homegrown fuel for our economy that, for domestic gas production, has around one-quarter the carbon footprint of imported liquified natural gas.
Our next steps to develop carbon capture and storage, in Scotland and the Humber, will also help to build a thriving new industry for our North Sea that could support as many as 50,000 jobs, as we deliver on our priority of growing the economy.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”