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| Fri, 9th Jul 2021 20:11:00 |
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Is a new oil field climate change hypocrisy? |
In a matter of months, all eyes will be on Scotland for climate crisis talks of world significance - but at the same time, a proposal is afoot to tap a new oil field west of Shetland for further fossil fuels.
November's COP26 summit in Glasgow will see representatives from across the world gathering to try to reach agreements on how to reduce emissions - aka greenhouse gases.
The UK government has promised to take the lead role in what is seen by many as our last, best chance to prevent global temperatures from spiralling out of control.
But environmental groups have accused ministers of "hypocrisy" after it emerged that the development of a vast new North Atlantic oil field at Cambo, west of Shetland, could get the green light.
Tessa Khan, an international climate change lawyer who founded Uplift, one of a number of groups signing a letter against the Cambo proposals, accused ministers of automatically nodding projects through without thinking about their climate impacts.
"Boris Johnson aspires to be a climate leader but it requires him to understand the reality of the climate emergency and, crucially, act on it," she says.
"This means government needs to stop handing out new drilling licences in the North Sea and stop giving the go-ahead to untouched fields, like Cambo.
"And it means coming up with a real plan for phasing out supply while supporting workers to build what could be a globally-significant renewable energy industry in the UK."
What is the Cambo oil field?
The Cambo oil field is situated approximately 125km (75 miles) to the west of the Shetland Islands in water depths of between 1,050m to 1,100m and it contains over 800 million barrels of oil.
While the UK government says the original "licensing approval" for the site dates back to 2001, it is important to note that licence was an exploration licence.
Before any oil or gas is discovered in a particular location, such a licence gives companies permission to seek out where it is.
An industry expert has told me that there is then a lengthy, rigorous process - which can sometimes take decades - involving the creation of field development plans, environmental statements and many other requirements which require approval from the relevant bodies, before production activity can begin.
If approved by the Oil and Gas Authority, drilling at Cambo could start as early as 2022. And the field is expected to produce oil and gas for approximately 25 years.
It is this "licensing loophole" that is also causing concern to campaigners.
A spokesperson for the UK government's Department of Business, Energy and Industrial Strategy (BEIS) has responded to the criticisms, saying: "While we are working hard to drive down demand for fossil fuels, there will continue to be ongoing demand for oil and gas over the coming years, as recognised by the independent Climate Change Committee."
The company behind the Cambo proposal is Siccar Point Energy, backed by private equity firm investors.
It sees this as an opportunity to create more than 1,000 jobs and even more in the supply chain.
"The Cambo development supports the country's energy transition, maintaining secure UK supply," says Jonathan Roger, the company's CEO.
"We have proactively taken significant steps to minimise the emissions footprint through its design and Cambo will be built 'electrification-ready', with the potential to use onshore renewable power when it becomes available in the future, in line with decarbonisation targets."
Energy system transitions
The other player is Shell, which has a 30% stake in the project. While a spokesperson told me they were unable to comment on the licence application because Shell is not the operator, they did tell me about the company's overall strategy.
They said: "Even the most ambitious scenarios tell us that as the energy system transitions, the world will continue to need oil and gas for decades to come.
"Targeted investment will generate cash to help fund the growth of our new low-carbon portfolio."
But the group of campaigners protesting against the proposal do not believe this sticks, with Friends of the Earth gaining thousands of signatures on their petitions.
They calculate that in phase 1, emissions alone would be approximately the equivalent of the annual greenhouse gas emissions of 16 coal-fired power plants.
They say this contradicts a number of robust targets and recommendations to keep rising temperatures in check, including the International Energy Agency recommendations for no new oil and gas fields from 2021, except those already approved.
"The huge response to the open letter shows that the public understand that we must keep fossil fuels in the ground and switch to clean renewable energy," says Friends of the Earth Scotland climate and energy campaigner Caroline Rance.
"Both the UK and Scottish governments must end their hypocritical support for drilling for every last drop of climate-wrecking oil and gas, and instead develop a clear plan for winding down fossil fuel extraction while retraining offshore workers and supporting communities affected by this transition."
While the Scottish government did not directly comment on the proposal, a spokesperson did reiterate a commitment to becoming a net-zero economy by 2045 and that "any Scottish government support for oil and gas businesses operating in the North Sea is conditional upon them contributing to a sustainable and inclusive energy transition, and ensuring a secure energy supply".
But ultimately the decision on whether or not to allow the Cambo oil field to be drilled will be taken by officials in the Oil and Gas Authority, an organisation that says: "Oil and gas currently meet around three-quarters of UK energy demand and are forecast to remain needed in future."
A public consultation on the proposals is open until Saturday 10 July.
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