Shell has released an amended plan for the development of a major North Sea gas field, which British regulators initially rejected last year on environmental grounds.
The London-headquartered firm said in the new environmental development plan of the Jackdaw field that it aims to start production from the field, which will supply 6.5 per cent of Britain’s gas output, by Q3 or Q4 2025.
The British government has in recent weeks urged North Sea producers to ramp up oil and gas output as Europe tries to reduce its reliance on energy from Russia, following its invasion of Ukraine.
Shell has released an amended plan for the development of a major North Sea gas field which British regulators initially rejected last year on environmental grounds
Oil and gas prices have shot to multi-year highs in recent weeks.
Families struggling with soaring energy bills saw the average price of petrol at forecourts hit a record 165.89p per litre yesterday, up from 148.0p just a month ago – while diesel was at 177.34p, up from 151.6p a month ago.
Now, the average motorist topping up a diesel-powered vehicle could reasonably expect to pay an extra £12 each time they fill up a 60litre capacity tank. Typical family cars will now cost around £90 to fill up.
Oil prices soared following Russia’s invasion of Ukraine, leading to higher wholesale costs for fuel retailers with motorists seeing eye-watering surges at the pumps.
The price per barrel of Brent crude had reached a staggering £106 ($139) on Monday of last week – its highest level in 14 years.
Prices have since stabilised at around £83 ($109), which is where they remain this morning amid continuing fears over potential supply shocks.
The government is expected to publish an energy transition strategy plan next week, which will put more focus on security of energy supply through domestic production.
In terms of Shell’s ambitions, Britain’s Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) in October rejected on environmental grounds the development plan for the Jackdaw field, which has reserves of between 120 million and 250 million barrels of oil equivalent.
The Jackdaw development is pivotal to Shell’s plan to develop natural gas output at the Shearwater hub in the central North Sea. Following its release, the Jackdaw environmental plan will face a 30-day public consultation period after which OPRED will review it.
Many banks and institutions are increasingly reluctant to fund the development of new oil and gas projects.
ABP, from the Netherlands, one of the world’s largest pension funds, said last year it will sell all of its holdings in fossil fuel companies, worth over £12.8billion, to protect its retirees from the effects of climate change.
Agitation for change is also coming from the boardroom, with BP boss Bernard Looney saying in 2020 that he would work to cut its oil and gas production by 40 per cent by the end of the decade.
He has also backed plans to ban sales of new petrol and diesel cars by 2030.
