11 July 2023 – New analysis has shown that new oil and gas fields in the North Sea wouldn’t significantly increase the UK’s energy capacity and nor would it lower UK energy prices.
The UK Government is considering giving out new licences for new oil and gas fields in the North Sea. For one of the largest fields, Rosebank, a decision is imminent.
No. 10 argues that new fields are necessary to guarantee energy security in the UK. However, campaigning group Uplift has analysed government data and contradicts the government’s arguments.
Allowing the development of new fields would also go against the advice of the International Energy Agency.
New Fields Would Only Provide Three Weeks Of Energy Per Year
The UK, like the rest of the world, has seen energy prices soar after Russia invaded Ukraine. Households were hit with a sharp increase in their energy bills, which forced the UK Government to step in to help.
As a result, energy security is high on the agenda of No. 10, because the energy support packages for households and businesses were very expensive.
That’s why the government is considering to licence new developments of oil and gas fields in the North Sea. The additional energy produced by these will contribute to energy security and lower the energy price in the UK, the government says.
The transition to non-fossil forms of energy cannot happen overnight and even when we’re net zero, we will still need some oil and gas, as recognised by the independent climate change committee. Sourcing gas domestically is also better for the environment as it has a lower carbon footprint.
Spokesperson for the Department for Energy Security and Net Zero
However, campaigning group Uplift has analysed government data and says that the fields that are currently under consideration, would not add greatly to the UK’s energy capacity.
At most, these fields would add a gas capacity of three weeks per year between 2024 and 2050. However, only if all the gas sourced would be used to supply UK households.
But Uplift has pointed out that, according to the government’s own records, already 60% of all gas from the North Sea is sold to the highest bidder. So any further gas from the UK’s gas production is likely to also be sold overseas.
It’s the same story with oil, Uplift’s research shows. The new oilfields would be able to satisfy the UK’s oil demand for up to five years. But only if all the oil produced is used by the UK.
And government data shows that at the moment the UK exports 80% of all the oil produced in the North Sea. It is highly likely that any additional oil would also be exported.
Uplift’s analysis clearly shows that the development of new oil and gas fields would not contribute to the UK’s energy security. Equally, it wouldn’t reduce UK energy prices either.
As pointed out by a former minister, it takes years for the fuel to come onstream, and is more likely to be sold overseas anyway. Therefore, the impact on UK energy prices would be minimal.
New Fossil Fuel Developments Would Fuel Climate Change
In a report, commissioned by the UK Government, the International Energy Agency has advised that no new oil and gas fields should be developed. Otherwise, the world will not achieve the Paris Agreement target to stay 1.5°C below pre-industrial levels.
Calculations by campaigners show that the greenhouse gas emissions the field in Rosebank would emit would be more than the total proportion for oil and gas in the UK’s carbon budget.
This would mean, even if only this one oil and gas field were to be approved, the UK’s carbon emissions would shoot up. Even the former Chair of the Climate Change Committee Lord Deben, who stepped down in June, is against any new oil and gas developments in the North Sea.
The Labour Party has pledged to stop licencing any new oil or gas fields, if they win the next general election. Instead, their policies would see clean energy boosted to improve energy security and reduce energy bills for UK households.
The only way to deliver lower bills and energy security for our country is to move away from fossil fuels, and on to clean, cheap, homegrown power.
Ed Miliband, Shadow Climate Secretary
Uplift’s analysis seems to confirm this view. It shows that the UK’s existing fields in the North Sea will only be able to supply enough gas at the predicted levels of demand for just over five years.
After that time, the UK will have to import gas at prices that become more and more expensive. As a result, UK households will have to pay more to heat their homes.
Clean or carbon-low energy won’t run out and can supply energy for the foreseeable future. On top of that, clean energy is cheaper to produce. This would give the UK energy security and lower the bills for people.
