Energy giant Shell is said to be reconsidering its decision not to invest in the Cambo oil and gas field in the North Sea.
Due to increasing oil prices, a move away from dependency on Russian oil and a focus on rising domestic fuel prices – Shell is said to be reconsidering its previous decision.
In December, Shell said it would not proceed with the Cambo field west of Shetland. At the time it claimed there was “no economic case”.
Since then the price of crude oil has risen from $70 a barrel to upwards of $130, as the Russian conflict has added to uncertainty over supplies.
The BBC is reporting that Shell had not sold its interests in the field.
Last week, Boris Johnson warned that turning off the taps to North Sea oil and gas leaves the country open to “blackmail” by Vladimir Putin.
The Tory leader told his party’s conference in Aberdeen how Scotland can lead a “great national effort” to wean the UK off any Russian fossil fuels.
Scheme operated by private oil and gas firm
He is expected to announce new oil and gas exploration in his energy review later this month.
The controversial scheme is operated by Siccar Point Energy, a privately-owned oil and gas firm. In December it announced it would “pause” the development without the backing of Shell.
Shell pulled out of the project following the environmental summit COP26 and in the wake of strong political and environmental opposition.
Shell said at the time that it was because the economic case was “not strong enough”, casting doubt over the future of the project and for wider developments in UK waters.
First Minister Nicola Sturgeon had confirmed her opposition to the controversial Cambo scheme in November.
She came under criticism from political opponents that the SNP leader was willing to “throw away thousands of jobs and risk hikes to energy prices”.
Environmental campaigners claimed a “death blow” to the controversial West of Shetland project when Shell decided not to move it to a crucial investment decision.
More recently. Shell admitted it was working with Siccar Point and the UK Government to “map out the next steps” on the Cambo project.
Shell is ‘flip-flopping’ over Cambo
Philip Evans, oil and gas transition campaigner for Greenpeace UK, said: “The type of oil that can be extracted from Cambo is not usable in the UK, so this project will do nothing to tackle high bills or shore up energy security.
“Shell’s reported flip-flopping on Cambo shows exactly why we need to get off oil and gas and move towards homegrown renewable energy.
“Shell wasn’t interested in pursuing this project when it was a bad look for them, but now they stand to gain billions in the midst of war-time price hikes – they’re interested again.
“Meanwhile our bills soar, and offshore workers are trapped in a volatile industry.
“The UK and North Sea communities deserve better. With the Spring Statement and a new energy strategy coming up, the government must throw its weight behind British renewables, a proper home insulation scheme and heat-pump roll-out, or our energy policy will be disrupted by the whims of fossil fuel giants for decades.”
SNP-Green Coalition would ‘turn off taps’
Liam Kerr, Scottish Conservative shadow secretary for energy, net zero and transport, said: “This SNP-Green coalition would turn off the taps in the North Sea tomorrow if they could.
“The Scottish Conservatives repeatedly warned them, and Labour, about the ramifications for domestic energy security — and Putin’s appalling invasion of Ukraine has brought into even sharper focus the importance of not relying on foreign oil and gas imports.
“Their dogmatic refusal to change course looks more reckless by the day, so Nicola Sturgeon must admit she’s got this wrong and give her backing to Scottish oil and gas production — and the tens of thousands of skilled jobs it supports.”
The Scottish Government says it continues to urge the UK Government to review all approved oil licenses.
A spokesman said: “Recent actions by Russia only serve to highlight the importance of accelerating the transition to renewable energy sources.
“In Scotland, the equivalent of nearly 100% of our electricity demand already comes from renewable sources and we are focused on reducing energy demand while accelerating the deployment of renewable energy, with plans for a 10-fold increase in installed offshore wind capacity – enough to power more than 8million homes – and to more than double the country’s onshore wind capacity by 2030.”
Shell and Siccar Point have been contacted for comment.
