There is only one way Labour can win the North Sea oil and gas debate
WWhen ministers oppose the government’s stance banning new drilling in the North Sea, there are two arguments that tend to come into focus. The first is that oil and gas are traded on global markets – so prices are fixed regardless of UK production – and the second is that 90 per cent of the UK’s North Sea Basin is extracted and no new government policy will change that.
“It is a false claim to say that we wish we had issued new licenses today. [it] “It will impact the energy prices that we’re facing because of the situation in the Middle East,” Commerce Secretary Chris Bryant said when asked in a debate on the issue. Loosening of Russia’s oil sanctions Unless we should try to increase North Sea oil because of the war in Iran. seen in recent months Keir Starmer, Rachel Reeves and even the energy secretary Ed Miliband focus on a similar line.
It is certainly true that energy bills will no longer be determined by fluctuating prices on global hydrocarbon markets, but will only be driven by a massive transition to renewable energy sources. Moreover, the previous government’s ” “maximum economic recovery” resulted in discoveries that would only provide 36 days more gas per yearThis is how the decline of the North Sea Basin happened. But opponents may still counter by saying: “This may be true, but it doesn’t hurt to maximize the benefit, even if the difference it makes is negligible.”
A third argument therefore becomes critical for the government. The International Energy Agency (IEA) published a report in 2021. milestone report The report on how the world could reach net zero emissions by 2050 (the UK’s current legally binding climate target) included the note that no new drilling licenses would be needed for the world to have enough oil and gas to ensure this target is met.
While countries around the world continue to do this, as Donald Trump noted, “Drill, Baby, Drill” As if there was no tomorrow, the IEA’s warning remains valid. devastating climate impacts. This is especially significant for a rich country like the UK, which has grown rich thanks to fossil fuel-powered industry for centuries.
“Adopting a policy of extracting every last drop might give the UK a small short-term gain, but it would send the message to all other countries that they could do the same. Then we could be facing 4-5°C of warming, which would mean the collapse of civilisation,” explains Ed Matthew, director of the UK program at the E3G think tank. 1.5 degree climate change limit is the big target set at this milestone Paris Agreement 2021 is the year to prevent the most devastating consequences of global warming.
“I’m sorry if this sounds dramatic, but it’s not an exaggeration,” Matthew continues. “Climate change is a scientific fact that is currently being researched in great depth. We know what will happen if we don’t address it.”
A world with unchecked climate change will create a cost of living crisis that will make today seem like a walk in the park. a study demonstrations It is stated that the global economy could take a hit of $38 trillion annually by 2050. finds It is stated that incomes could be 40 percent lower by 2100 than in a world without climate change.
There are already two sites approved for mining in the North Sea, but this has been blocked by the Scottish Court since last year. The decision claimed that the permits were given without fully evaluating the climate impacts.
The first of these, Little Crow, is a gas field owned by Shell, about 150 miles east of Aberdeen. The second, Rosebank, is an oil and gas field in northwestern Shetland, jointly owned by Shell and Norwegian state oil giant Equinor. Shell recently went public. We call on the government to sign them.
Ed Miliband will soon decide with his party members whether these areas will be approved for production. Rachel Reeves He states that they will support such a move. Their approval would also not conflict with Labour’s election manifesto, which said it would not issue new drilling licences, but would honor existing ones.
At the same time, research has shown that the fields would make almost no difference to the UK’s dependence on gas imports, with Jackdaw and Rosebank meeting only two per cent and one per cent respectively of annual gas demand from the UK.
Some would argue that even that would be worth it. But there is a bigger question for the government about whether this marginal gain in output will outweigh the broader principle that the UK is signaling to the world that it is truly turning its back on fossil fuels. embrace very real opportunities clean energy economy
This article was produced as part of The Independent. Rethinking Global Aid project
