UK’s energy security strategy due for publication on Thursday6 Apr 2022 20:58
"The UK Government is set to unveil its long-awaited Energy Security Strategy on Thursday, with new renewables, nuclear and domestic gas “all a crucial part of achieving its aims”, according to Prime Minister Boris Johnson.
It comes as the UK looks to forge a path of greater energy independence amid spiralling energy prices, and a drive to wean the country off Russian oil and gas imports.
All the while, the course must also remain firmly fixed on the country’s 2050 net zero target.
Secretary of State for Business, Energy and Industrial Strategy (BEIS) Kwasi Kwarteng has made it clear that the strategy will see more local energy production, and faster, though full details of the plan are not yet clear.
Whatever its contents, all signs point to a strategy that places a renewed importance on North Sea oil and gas.
The North Sea Transition Authority (NSTA), has already confirmed its intention to hold a new North Sea exploration round this year, while other reports have suggested development plan approvals for six key fields could be fast-tracked to spur momentum this year.
A licence extension granted to the controversial Cambo project also suggests it could see a renewed route to final investment decision (FID) as domestic production is prioritised.
Meanwhile in a recent interview Brexit Opportunities Minister Jacob Rees-Mogg batted away calls for a windfall tax, saying that companies should seek to extract “every last drop” from the North Sea.
Other measures to shore up investment may also be announced. A Treasury representative recently noted that the department is already meeting with lenders to encourage them to back North Sea projects.
However, it is clear that any new field developments will be long-term solutions to short-term problems, as projects will still take years to come line.
Trade body Offshore Energies UK (OEUK) recently warned that if there are no fresh exploration and production facilities, by 2030 around 80% of UK gas supplies and more than 70% of oil will have to be sourced from abroad.
There have also been calls to boost the UK’s gas storage capacity, after the closure of the Rough facility left the nation without much seasonal flexibility beyond the spot market."
https://www.energyvoice.com/oilandgas/north-sea/401201/what-to-expect-from-the-uks-energy-security-strategy/?msclkid=3aa47ea0b5da11ec9bc94027ba95c197
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