From Tallbloke’s Talkshop
July 17, 2023 by oldbrew
Climate dogmatists can’t bear such ideas, but money doesn’t grow on trees. Meeting oil and gas demand mainly from imports is poor policy in many ways, but fixed ideas about trace gases in the atmosphere may prevail despite a glaring lack of economic rationality.
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Offshore Energies UK (OEUK), the trade body for the UK’s oil and gas companies and contractors, has today announced the sector could invest £200bn in technologies and projects critical to delivering on climate targets by the end of this decade – provided the government enables new oil and gas fields as well as offshore wind projects, reports Business Green.
In a new report released this morning, OEUK said the government can maximise the development of the UK’s offshore energy supply chain if it delivers on the policies set out in its British Energy Strategy, including its controversial promise to grant licenses for new domestic oil and gas production.
Under a scenario where the government meets its energy production and local content goals, more than 50 per cent of new energy projects planned by OEUK would be delivered by the UK supply chain, amounting to roughly roughly £90bn being invested in UK companies between now and 2030, according to the trade body.
But in a “low investment” scenario where the government does not approve new oil and gas projects, the industry’s investment in energy production and technology projects that can help meet climate goals including new carbon capture projects would be lower, and would deliver only £60bn for UK supply chain companies, the OEUK warned.
Katy Heidenreich, supply chain and people director at the OEUK, said it was important to invest in oil and gas alongside renewables, as she called on government to signal its political support for the sector.
“To deliver an energy future that benefits the UK economy, jobs and innovation, we need both the volume of work and the focus on supply chain companies here winning a bigger share of that work,” she said. “As we build this future, there is no simple choice between oil and gas in one hand and renewables in the other. The reality is that both are needed to keep the lights on and grow the economy.
“With oil and gas expected to remain a sizeable chunk of supply chain opportunities until at least 2027, we can understand why so many supply chain companies are telling us they are worried about political support for the sector. The supply chain needs a pragmatic and long-term approach if it is to thrive here.”
Full report here..