ENERGY NEWS
9
APRIL 2021
UK NORTH SEA
Energy Review By Tsvetana Paraskova
Reports of UK ministers considering a possible ban on new exploration licences, industry reviews and forecasts for the UK oil and gas sector, government decarbonisation plans, mergers and acquisitions, and drilling and field development updates were the key themes in the UK oil and gas industry this month.
UK ministers are considering the possibility to ban new offshore oil and gas exploration licenses as a range of options for a potential change in the licensing regime, The Telegraph reported in the middle of March. A decision is expected to be taken soon, an industry source told The Telegraph. Options under consideration reportedly range from ending the issuing of licenses in 2040 to an immediate temporary pause in license issuing, or no changes at all, The Telegraph reports. Commenting on the story, OGUK Sustainability Director Mike Tholen said: “Any curtailment of activity by licencing constraints risks impeding the UK’s ability to deliver a net-zero future, damaging our domestic supply chain and increasing energy imports whilst exporting the jobs and skills.” Responding to a question about the possibility of no new licences in the North Sea, Scotland’s First Minister Nicola Sturgeon said during Question Time in Parliament that while Scotland’s transition away from fossil fuels “is well under way, but we need to do it in a way that supports people into new employment instead of leaving them unemployed and that does not substitute our energy for increased imports that add to our carbon footprint.” OGUK published in March its Business Outlook 2021, offering a first glimpse into the oil and gas sector’s ability to recover from the horrendous 2020. A total of £11.6 billion was spent on the development and operation of UKCS oil and gas resources and infrastructure in 2020, down by 23% from the £15 billion spent in 2019, and the lowest total expenditure since 2004. Spending will remain low this year, but it could see a slight rise compared to 2020, OGUK said, anticipating spending at between £11.4 billion and £12.4 billion.
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