North Sea oil and gas drilling approved as Cabinet push back against ‘insane’ Net Zero plans
The Daily Telegraph, 8 February 2022
Six North Sea oil and gas fields are set to be given the green light this year, The Telegraph has learnt, as Cabinet figures push back against “insane” demands to go further on net zero.
Rishi Sunak has asked Kwasi Kwarteng, the Business Secretary, to fast-track the licences amid Treasury fears over the economic impact of making the UK a net zero carbon emitter by 2050.
It is the latest sign of tensions between Number 10 and Number 11 after the Treasury held back plans for bringing down NHS backlogs and demanded better value for money.
The Telegraph understands that Mr Sunak is also preparing to resist Boris Johnson’s high-spending instincts over public sector pay, measures to limit migrant Channel crossings and the scrapping of free Covid tests.
On Monday, the Prime Minister moved to play down suggestions of a rift with Mr Sunak – seen as a future Tory leadership contender – by responding “absolutely not” when asked whether he has doubts about the Chancellor’s loyalty.
He said: “Everybody in Number 10 and the Treasury are working together in harmony to deal with the big problems that the country faces and clearing the Covid backlogs.”
The six oil and gas areas, which have already been given a preliminary licence by ministers, are expected to be given approval by Britain’s oil and gas regulator to begin construction of rigs in the North Sea.
An Oil and Gas Authority map showing the approximate areas for exploration projects
Despite calls for all domestic fossil fuel extraction to be halted, ministers have pledged to continue to support oil and gas production while renewable energy sources are developed.
Drilling of oil and gas could begin in the Rosebank field, to the west of Shetland, and at the Jackdaw, Marigold, Brodick and Catcher sites in the central North Sea. A sixth site, Tolmount East, had been intended to be approved by the Oil and Gas Authority last year but is now expected in 2022.
The combined reserves of all six sites are thought to be enough to power the whole UK for six months, with 62 million tonnes of oil equivalent fuel in the ground.
A Whitehall source told The Telegraph: “The Business Secretary is pushing for more investment into the North Sea while we transition – not just for jobs and tax revenue, but for domestic energy security.
“Kwasi is actively resisting insane calls from Labour and the eco-lobby to turn off UK production. Doing so would trash energy security, kill off 200,000 jobs, and we would only end up importing more from foreign countries with dubious records.
“Over the long term, we need to generate more secure, affordable, low carbon power in the UK to achieve greater energy independence. The more clean power we generate in the UK, the less exposed consumers will be to gas prices set by international markets.”
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February 8, 2022 at 10:18AM
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