Shell reconsidering investment pulled from UK
Energy giant Shell is said to be reconsidering its recent decision to pull investment from a large new UK oil field.
In December 2021, Shell said it was withdrawing from the Cambo oil field, located 75 miles off the west coast of Shetland, due to the economic case and regulatory delays.
At the time, the price of crude oil was under $70 a barrel but this figure has since doubled in price and has consistently been over $100.
Oil prices are currently high and unstable due to the ongoing war betwen Russia and Ukraine, creating fears that Russian oil may be cut off.
The UK government said it is willing to fast-track investment in domestic fossil fuels in a bid to remove reliance on Russian oil.
According to the BBC, sources close to the matter said that the economic, political, and regulatory environment had changed enormously but that the company’s official position had not changed.
Shell’s decision to withdraw from the investment was welcomed by environmental campaigners, who described Shell’s decision as a hammer blow to the project.
Last week the company resubmitted an application to develop the Jackdaw North Sea gas field having turned it down in October.
The company said it had modified the chemical processes involved in the gas extraction to ‘meet regulatory requirements.’.
The UK government said it remains committed to the domestic offshore oil and gas sector as the UK transitions to net-zero greenhouse gas emissions.
The government is due to unveil its energy supply strategy early next week.
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