The Tory government will allow oil and gas companies to explore offshore areas slated to house wind power installations, the Guardian has reportedciting an announcement to be made later today.
The North Sea Transition Authority, formerly the Oil and Gas Authority, will also today confirm exploration licenses were granted to some 30 companies for these areas.
Prime Minister Rishi Sunak first made waves in transition circles last year when he announced he would not ban oil and gas drilling despite the UK’s ambitious transition goals. Now, the news that oil exploration will be allowed on offshore wind sites will probably add to the disgruntlement of transition advocates and supporters.
However, the continued exploitation of the UK’s offshore oil and gas resources has some solid justification in the form of energy security as well as budget income.
A report by Offshore Energies UK in March, for instance, suggested that a stable energy policy and a competitive tax regime would help the country reap benefits to the tune of close to $490 billion in the period to 2040.
“Our journey to net zero and beyond depends on responsibly making the most of our oil and gas production, which is at record lows,” said OEUK’s chief executive David Whitehouse, as quoted by Bloomberg.
“We’re facing a situation where we must import energy that could have been produced here and where we must rely on supply chain companies that could have been based here.”
On the other hand, Sunak’s former climate adviser Chris Skidmore was highly critical of the move:
“With a general election just months away, this is a deeply irresponsible and divisive move that goes against all advice from the International Energy Agency or the UN, and regrettably will further set back the UK’s climate reputation,” he told the Guardian.
“Instead of wind powering new oil, the investment should instead be in more wind and renewables. More fossil fuels will only create stranded assets and stranded jobs at a time when demand for oil and gas is falling,” Skidmore added.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com:
