THE UK will end up emitting millions of tonnes of additional C02 if it choses to import more oil and gas instead of developing new North Sea fields, according to a report.
Analysis from experts at Wood Mackenzie estimates that the development of the Rosebank and Cambo oil fields would save 17 million tonnes of CO2 emissions over their projected lifetimes compared to the equivalent amount of imported oil and gas.
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The report fundamentally undermines the position being advocated by Just Stop Oil and senior politicians such as Labour’s Ed Miliband, who want to see all new North Sea activity halted.
Instead, it supports the case outlined by industry bodies alongside Aberdeen & Grampian Chamber of Commerce by demonstrating that relying on more imports will hinder the UK’s net zero efforts.
Emissions from imports ‘500% higher’
Malcolm Forbes-Cable, Vice President of Energy Consulting (Upstream, EMEA) at Wood Mackenzie said that alongside the lower emissions compared to imports, Rosebank and Cambo would contribute as much as £40billion of gross value add (GVA) to the UK economy and create 900 long-term jobs.
“The UK plays a critical role in the integrated European energy market and these developments would seek to reduce the need for the UK to import carbon intensive alternatives,” Forbes-Cable said.
“From an economic perspective, the business-case for the development of these two fields is compelling and there is the added benefit of the additional energy security it would bring to the UK.”
According to Wood Mackenzie’s Emissions Benchmarking tool, UK oil and gas production has materially lower emissions than imports. This would mean the additional emissions from imports would be 500% more than the hydrocarbons from an electrified Rosebank and Cambo.
“With final investment decisions looming [FID], both Rosebank and Cambo act as barometers for the future of oil and gas production in the UK North Sea,” Forbes-Cable said.
“If neither of these fields go to full development, it will be difficult to make a clear economic case for fields with less potential.”
Ryan Crighton, Policy Director at Aberdeen & Grampian Chamber of Commerce, has welcomed the report and said he hopes it helps bring a more reasoned debate about future fields.
“Here’s why screaming and throwing orange paint at everyone doesn’t help solve what is an enormously complex problem”, he said.
“Campaigners, including Ed Miliband, say that Cambo and Rosebank cannot be allowed to proceed. However, this report shows the development of these fields in the North Sea would save 17 million tonnes of CO2 emissions over their projected lifetimes compared to the equivalent amount of imported oil and gas.
“This report highlights clearly point we’ve been making throughout the political noise of the last six months. Shutting down the North Sea just to import more from Qatar and the USA isn’t climate leadership. It’s virtue-signalling nonsense that needlessly places thousands of jobs at risk in the North-east.”
