The Government view on home-produced oil18 Oct 2023 12:14
From the Telegraph today
https://www.telegraph.co.uk/business/2023/10/18/north-sea-oil-dependent-foreign-regimes-energy-secretary/
North Sea decline leaves Britain ‘subservient to foreign regimes’, says Energy Secretary
Claire Coutinho argues production will fall faster than demand without new drilling
Britain's Energy Security and Net Zero Secretary Claire Coutinho
Claire Coutinho has criticised Labour's plan to halt new North Sea drilling Credit: OLI SCARFF/AFP via Getty Images
Britain will become “subservient to foreign regimes” if it allows the North Sea to decline further, the Energy Secretary will warn on Wednesday.
Claire Coutinho is to raise concerns that the UK’s oil and gas output will halve by 2030, leaving it increasingly dependent on imports. Speaking at the annual conference of Energy UK, a leading industry trade body, Ms Coutinho will say: “New data from the North Sea Transition Authority (NSTA) in its Wells Report, warns that – without new oil and gas wells in the North Sea – output will halve by 2030. “The real-world consequence of this would be that this country would be forced to import up to 80pc of our oil and gas by 2030.
“The UK will not only be subservient to foreign regimes, but we risk decimating the same people and communities that we need to come with us on this green transition journey.”
Coutinho will say the UK is cutting its consumption of oil and gas in line with its targets for net zero, but without a new offshore drilling programme, production will fall much faster than demand.
That will create an energy gap that can only be met by increasing imports – meaning billions of pounds leaving the country and reduced energy security.
Data from the NSTA shows that the number of oil and gas wells in UK waters fell by 83 in 2022. The country now has 1,629 in total, compared with 2,052 in 2019.
Another 938 potentially productive wells have been mothballed, as Britain’s oil production also fell to an all-time low of 38m tonnes in 2022.
The NSTA data referenced by Ms Coutinho in her speech suggests it will plummet to 22m tonnes in 2030 unless new wells are drilled.
The UK consumes about 61m tonnes of oil annually.
north sea oil
Britain faces importing 80pc of its oil and gas without North Sea production Credit: CARINA JOHANSEN/NTB Scanpix/AFP via Getty Images
Gas production fell from its 2002 peak of 109bn cubic metres (bcm) to 38bcm last year.
Without new wells, that will halve again to 17bcm by 2030, the NSTA warns. The UK needs 76bcm annually.
Ms Coutinho, appointed just weeks ago, has criticised Labour’s pledge to halt all new drilling in UK waters to reach net zero by 2050.
She has said North Sea waters still hold enough oil and gas to support the UK for up to three decades.
Labour has confirmed it will block all new domestic oil and gas developments if it triumphs at the next election, proposing instead to invest heavily in renewable sources such as wind
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