Readers of Energy Voice will be familiar with the considerable role that North Sea oil and gas play in keeping our lights on, heating our homes and fuelling our cars.
The skilled and dedicated workforce on rigs off the Scottish coast are a vital part of our energy industry – and, as the Climate Change Committee itself recognises, will continue to be as we move towards our net zero target.
While we accelerate clean energy sources – whether that’s offshore wind farms, hydrogen or our revival of nuclear – we will continue to back our oil and gas industry, including domestic oil and gas production, which is pivotal for safeguarding British energy security.
This is why the Prime Minister has this week so clearly nailed our colours to the mast, flying the flag for the North Sea sector by committing to undertake future licensing rounds. The evidence is clear.
Without oil and gas from our own shores, we would need more imports from overseas. This would not only compromise our energy security but also our efforts to cut emissions and reach net zero, given that domestic gas production has around one-quarter the carbon footprint of imported liquified natural gas.
© PAOn top of this, the industry brings us huge economic benefits – supporting around 2000,000 jobs across the UK, particularly in the northeast of Scotland, and contributing £17bn to the economy each year.
Building on that strong industrial legacy, licensing of oil and gas will now be critical to securing our energy future – but so too will new technologies.
That’s why we are investing in carbon capture usage and storage (CCUS) and low carbon hydrogen, which – especially in the North Sea – will enable us to to build truly integrated offshore energy hubs, making the best use of established infrastructure and expertise whilst supporting new local jobs and growing the economy.
This is critical to reaching net zero emissions by 2050, and could also create a whole new industry. It’s why we’re investing an unprecedented £20 billion in CCUS, to help us achieve greater energy security, decarbonise our industries and create tens of thousands of new jobs in Scotland and across the UK.
To that end, we have this week confirmed backing for the Acorn carbon capture cluster to develop a new Carbon Capture, Usage and Storage (CCUS) cluster in Scotland. We will now progress with next steps, including due diligence, with Acorn and the Viking cluster in the Humber, to establish the UK’s next two CCUS clusters so that we create new jobs and protect our existing industries.
None of this means we are taking our eye off the prize of renewables – quite the opposite, we are investing billions of pounds as part of our plans to Power Up Britain. But our refreshed commitment to oil and gas licensing rounds, and our backing of new carbon capture clusters, will also put the North Sea at the heart of Britain’s energy future, benefiting the tens of thousands of workers in Scotland and across the country, supporting us to reach our net zero target – and helping keep the lights on and our homes warm.
The Scottish Government’s response to the North Sea licensing and CCUS announcements can be read here.
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