French Oil Workers Vote To Continue Strike

Michael Creg Afful
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Striking French oil workers have voted to continue their industrial action, which has led to shortages at fuel stations across the country.

They responded angrily after the government said it would use mandatory powers to force some of them to go back to work.

The strike, in its third week, has shut six of France’s seven oil refineries.

With long queues of cars now a regular sight at the pumps, the government wants to get the fuel flowing again.

Nearly a third of French petrol stations are now reported to be running short of at least one kind of motor fuel.

Unions want pay increases for their workers, which they say should take account of the huge profits being made at the moment by the oil companies.

They are seeking a 10% pay rise – 7% to cover inflation and 3% for what they call “wealth-sharing”.

The government’s latest move to head off the impact of the action is to requisition key staff at a refinery in Normandy, threatening prosecution unless they allow some lorry tankers to fill up.

French Prime Minister Elisabeth Borne said that if no agreement could be reached between the oil firms and the unions, the government would act to “unblock the situation”.

But the hard-left unions behind the stoppages see this as a threat to their right to strike and have toughened their position, calling the government’s warning “illegal” and a “choice of violence”.

A spokesman for the CGT union said it was waiting for the government’s requisition notifications and would challenge them in court.

Last Friday, French President Emmanuel Macron called on unions to end the strikes but said energy companies should listen to the workers’ “legitimate salary demands”.

The strike action has split opinion in France, with some commuters expressing exasperation over the fuel shortages and pointing out that they need their cars for work.

But at a time of growing anxiety about the cost of living and soaring profits for some energy companies, others have expressed sympathy for the strikers.

French Refinery Strikes Worsen As France Moves To Call Back Essential Workers

Michael Creg Afful
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France said on Tuesday that it would requisition essential workers to staff Exxon’s French oil depot, and threatened to do the same for Total’s French refineries if talks failed to progress. But workers at Total’s Donges refinery decided on Tuesday to strike beginning on Wednesday, French union CGT said. French Prime Minister Elisabeth Borne said on Tuesday that the government would start the callback process for ExxonMobil’s staff at its oil depots in the country after talks between the oil company and two unions, CGT and FO, stalled. The CFDT union, however, managed on Monday to reach an agreement with Exxon. “Today some unions, despite the deal, wants to continue the strike action and blockades, we cannot accept that,” Borne said, according to Argus media. Those comments followed weekend comments by the country’s energy minister Agnes Pannier-Runacher that the government was “doing its utmost to restore the situation to normal as soon as possible.” The CGT and FO unions declared strikes weeks ago at Total’s 246,900 bpd Gonfreville and 109,300 bpd Feyzin refineries, along with the Carling petrochemicals plant. The FO Now, ExxonMobil’s 219,000 bpd Donges refinery is being added to the list. The FO union had workers striking at Exxon’s 235,000 bpd Fos-Sur-Mer refinery, as well as its 270,000 bpd Port Jerome refinery, but FO called off its strike action on Monday, Argus said. The additional striking action comes just as France prepares to order some essential workers back to the workplace. More than half of the country’s refinery capacity has been offline as many of the country’s gas stations suffer widespread gasoline and diesel outages. On Monday, the CGT trade union rejected an offer from TotalEnergies, which had offered to bring forward negotiations if the union called off the strike.   Source:Oilprice.com

Kenya: President Ruto Commits To Building Tanzania-Kenya Gas Pipeline  

Michael Creg Afful
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Kenya intends to press on with the building of a natural gas pipeline from Tanzania’s main city Dar es Salaam to its coastal city of Mombasa and later to the capital Nairobi, in a bid to lower energy tariffs, Kenya’s President William Ruto has said. Local reports put the costs of the 600km (372-mile) pipeline at about $1.1bn (£990m). Mr. Ruto expressed commitment to the project on Monday, when he spoke to some journalists in Tanzanian, shortly after holding bilateral talks with President Samia Suluhu, on his first visit to the neighbouring country since he took office in September. Mr. Ruto said the project would lower energy tariffs in the industrial sector, as well as for families in their homes. In May last year, Mr. Ruto’s predecessor, Uhuru Kenyatta and Ms Suluhu signed a preliminary agreement covering the transport of gas from Tanzania to Kenya for use in power generation and, potentially, for cooking and heating. The deal was said to be part of a longer-term plan to expand infrastructure links between the two big economies of East Africa.       Source: https://energynewsafrica.com

Ukraine War: US Taking Advantage Of Energy Crisis To Exploit EU, Selling Gas At Four Times The Price – French Minister

Michael Creg Afful
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The French Finance Minister Bruno Le Maire has warned that the United States should not be allowed to dominate the global energy market while the European Union suffers from the consequences of the conflict in Ukraine.  Le Maire, who spoke on Monday while addressing the National Assembly, said, “The conflict in Ukraine must not end in American economic domination and a weakening of the EU.” He described as unacceptable that Washington “sells its liquefied natural gas at four times the price than it sets for its own industrialists,” adding that “the economic weakening of Europe is not in anyone’s interest.” “We must reach a more balanced economic relationship on the energy issue between our American partners and the European continent,” Le Maire said as quoted by RT. Prior to the conflict in Ukraine, Russia was the EU’s largest gas supplier, responsible for about 45% of the bloc’s gas imports. However, due to sanctions imposed on Moscow in recent months, Russian gas supplies to the EU have decreased significantly. Facing an energy crisis, EU countries have rushed to fill their storage facilities – the level of reserves in underground storages was close to 91% as of Monday, according to Gas Infrastructure Europe. The storage sites are largely filled by liquefied natural gas (LNG), and are currently at their highest seasonal levels since at least 2016, according to data compiled by Bloomberg. However, LNG imports from overseas cost much more than gas supplied via pipeline from Russia under long-term contracts, and energy prices in the bloc continue to rise. The EU has considered setting a cap on natural gas prices for all suppliers, but a number of countries are opposed to this. Norway, a non-EU state but a partner in the European Economic Area (EEA) and one of EU’s major gas suppliers, recently warned that a step such as this could aggravate the situation, forcing exporters to divert supplies to other markets. Thousands of protesters are rallying in major cities of European countries over the soaring energy price and gallop inflation across the EU.       Source: Sahara Reporters

Ghana: NPA Fines 9 Oil Marketing Companies Gh₵2.2 Million For Engaging In Illegality

Michael Creg Afful
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Ghana: NPA Fines 9 Oil Marketing Companies Gh₵2.2 Million For Engaging In Illegality
Ghana’s petroleum downstream regulator, the National Petroleum Authority (NPA), has fined nine oil marketing companies to the tune of Gh¢2,215,000 (equivalent of $201,343.50) for engaging in third-party trading of petroleum products and unlawful lifting of petroleum products. The companies which engaged in the unlawful acts are Bello Petroleum, Jas Petroleum, Oval Energy, Kros Energy, Safety Petroleum and Santol Energy. The remaining are Riseglobe Energy, Sayon Energy and Cigo Energy. This was contained in a release issued by the NPA on Tuesday, 11th October 2022. The NPA directed that “Cigo Energy pays a fine of Gh₵725,000.00 comprising Gh₵30,000.00 for engaging in third-party supplies for the second time and Gh₵695,000.00 for the unlawful lifting of petroleum products.” It fined Sayon Energy Gh₵425,000.00 comprising Gh₵10,000.00 for engaging in third-party supplies for the first time and Gh₵415,000.00 for the unlawful lifting of petroleum products while Bello Petroleum was slapped with a fine of Gh₵120, 000.00 comprising Gh₵10,000 for engaging in third-party supplies for the first time and Gh₵110,000.00 for the unlawful lifting of petroleum products. The regulator also fined Jas Petroleum Gh₵65,000.00 comprising Gh₵10,000.00 for engaging in third-party supplies for the first time and Gh₵55,000.00 for the unlawful lifting of petroleum products while Oval Energy was fined Gh₵245,000.00 comprising Gh₵10,000.00 for engaging in third party supplies for the first time and Gh₵235,000.00 for the unlawful lifting of petroleum products. Kris Energy was sanctioned to pay a fine of Gh₵295,000.00 comprising Gh₵10,000.00 for engaging in third-party supplies for the first time and Gh₵285, 000.00 for the unlawful lifting of petroleum products. Safety Petroleum will pay a fine of Gh₵200,000.00 comprising Gh₵10,000.00 for engaging in third-party supplies for the first time and Gh₵190,000.00 for the unlawful lifting of petroleum products. NPA directed Safety Petroleum to pay a fine of Gh₵200,000.00 comprising Gh₵10,000.00 for engaging in third-party supplies for the first time and Gh₵190,000.00 for the unlawful lifting of petroleum products. “Santol Energy will pay a fine of Gh₵75,000.00 comprising Gh₵10,000.00 for engaging in third-party supplies for the first time and Gh₵65,000.00 for the unlawful lifting of petroleum products. “Riseglobe Energy pays a fine of Gh₵65,000.00 comprising Gh₵10,000.00 for engaging in third-party supplies for the first time and Gh₵55,000.00 for the unlawful lifting of petroleum products,” the release stated. The NPA gave them up to one month to settle the fines.             Source: https://energynewsafrica.com

ADNOC Drilling Awarded $1.53 Billion Contract To Support Expansion Of ADNOC’s Offshore Operations

Michael Creg Afful
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Abu Dhabi National Oil Company (ADNOC) has announced the award of a contract worth $1.53 billion (AED 5.62 billion) to ADNOC Drilling. The award supports the expansion of ADNOC’s offshore operations and its objective to responsibly increase production capacity and meet the growing global demand for reliable, lower carbon intensity oil and gas. ADNOC Offshore awarded the two-year contract which covers the provision of 12 jack-up rigs and two island rigs and the associated Integrated Drilling Services (IDS). ADNOC Offshore and its strategic international partners continue to maximize value from Abu Dhabi’s offshore oil and gas resources and this award will leverage ADNOC Drilling’s start-to-finish offering as well as its position as the largest drilling company in the region by rig fleet size to drive value and efficiencies while minimizing environmental impact. Over 80% of the award value will flow back into the UAE’s economy under ADNOC’s successful In-Country Value (ICV) program, supporting local economic growth and diversification. Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said: “Through this award, ADNOC Offshore will continue to responsibly harness the energy in Abu Dhabi’s waters, as we increase production capacity to meet the world’s growing demand for energy with lower carbon intensity oil and gas. ADNOC Drilling is a world leader in drilling and completion services. Their deep expertise and wide technical capability will maximize value and minimize the environmental foorprint of every well as ADNOC expands its production capacity. The substantial in-country value generated through this contract will support the directives of our wise leadership to grow and diversify the UAE economy.” This award will support the expansion of ADNOC’s crude oil production capacity to five million barrels per day (mmbpd) by 2030 and gas self-sufficiency for the UAE. ADNOC Drilling has provided IDS to ADNOC Offshore since 2019. The company’s highly competitive position, integrated capabilities and technical expertise have helped increase the efficiency of ADNOC’s offshore operations. Since ADNOC Drilling launched its IDS offering in 2018, the company has enabled more than $250 million (AED917.5 million) in savings for its customers through the successful end-to-end delivery of drilling and completion services.

Ghana: Armed Robbers Attack Star Oil Filling Station, Kill Security Man

Michael Creg Afful
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A group of suspected armed men invaded Star Oil Filling Station at Tojeh, on the Accra-Aflao road in the Dangbe East District of Greater Accra and shot dead the security man on duty. The robbers attacked the station on Monday, 10th October, 2022. It is not yet clear whether the robbers made away with cash. In a statement sighted on the Facebook page of the Ghana Police Service, it said they are currently on a manhunt for the suspects. “The Police are on a manhunt for a group of armed men who shot and killed a security man when they attacked and robbed the Star Oil Filling Station at Tojeh on the Accra -Aflao Stretch of the main road on 10th October 2022,” the statement said. “We will surely get them arrested to face justice,” the police said.       Source: https://energynewsafrica.com  

Ghana: ACEP, IMANI Demand Cancellation Of Dubious GNPC-Genser Energy Gas Sale Contract

Michael Creg Afful
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Ghana: ACEP, IMANI Demand Cancellation Of Dubious GNPC-Genser Energy Gas Sale Contract
Two policy think tanks—Africa Centre for Energy Policy and IMANI Africa—are demanding the cancellation of the gas sale agreement GNPC signed with Genser Energy, a private company in Ghana to provide power to mining firms in the western part of the country. According to the think tanks, their analysis of the agreement shows the West African nation is losing several millions of dollars and wants the deal to be cancelled and subjected to gas sector regulations. The GNPC, in 2020, signed a gas sale agreement with Genser Energy Ghana Limited to supply gas to the latter at $2.79 per MMBTU when the market price of gas was $6.08 per MMBTU. To add more salt to the injury caused to the Ghanaian taxpayer, GNPC, in a letter dated April 12, 2021, addressed to the Energy Minister, Dr. Matthew Opoku Prempeh, explained that the Corporation and Genser Energy Ghana Limited have reached a commercial arrangement to enable Genser to build 102km 20″ pipeline network from Dawusaso to Kumasi by 31st December 2021. The letter said GNPC would discount the price of natural gas to Genser from $2.79/MMBtu to $1.72/MMBtu for 55mmscfd of gas at take-or-pay and 20mmscfd of gas at take-or-pay. ACEP and IMANI Africa find this position by the GNPC, which was endorsed by the Ministry of Energy, shocking. Taking into consideration the market price of natural gas of $6.08 per MMBtu before the signing of the GNPC -Genser Energy Gas Sale Agreement, ACEP and IMANI noted that the consequence of the two poor decisions by GNPC deepened the gas price deficit by $4.36 per MMBtu. They noted that when GNPC was making a case for tariff increment in its 2022 tariff proposal to the PURC, it assumed a realistic gas market price of $7.9 per MMBtu for all power companies but Genser was exempted. “However, the PURC approved $5.9/MMBtu2, creating an under-recovery of $2/MMBtu for the gas market. To worsen this, Genser’s heavily discounted gas price of $1.72/MMBtu at the projected gas supply of about 320mmscf/d will create a cumulative cost of about $3.6 billion for the industry in the 16 years of the agreement if the PURC does not punish the other gas consumers to pay more. “GNPC has failed to justify the discount provided to Genser on the gas commodity except that the Corporation agrees to use Genser’s pipelines over the 16 years instead of the gas discount,” the ACEP and IMANI Africa statement said.   Source: https://energynewsafrica.com  

South Africa: Eskom Reinstates Rolling Power Cuts For Three Nights

Michael Creg Afful
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South Africa: Eskom Reinstates Rolling Power Cuts For Three Nights
South African state power utility company, Eskom, on Monday night resumed rolling power cuts to attend to unplanned breakdowns and replenish generation capacity. The night power outage will end on Wednesday, 12th October, 2022. The beleaguered state utility, which is reliant on ageing coal-fired power plants that frequently break down, has been implementing rolling blackouts, locally called load-shedding in the country, for more than a decade. The crisis has worsened this year with the high cost of diesel and the lack of availability of the product in the international market. “To the extent possible, Eskom will endeavour to limit load-shedding to night-time to have minimal impact on the economy and population,” the utility said in a statement, adding that it would implement around two hours of power cut from 1600 local time (GMT 1400) till midnight. “The load shedding should be used to replenish emergency generation reserves during the night to bolster generation capacity.” Till mid-September, Eskom had already implemented more than 100 days of power cuts with several major cities seeing blackouts for more than six hours lately. Frequent voltage surges on the restoration of power have also led to a multitude of local faults in cables and transformers, leaving some localities in the commercial capital, Johannesburg, without power for days. Eskom currently has 5487 megawatts (MW) on planned maintenance, while another 14,061MW of capacity was unavailable due to breakdowns, the company said. It has around 45000MW of installed capacity.      

Ghana: Patrick Nyarko Appointed Deputy CEO Of Petroleum Hub Dev’t Corporation

Michael Creg Afful
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Ghana’s President Nana Akufo-Addo has appointed Patrick Nyarko as the Deputy Chief Executive Officer in charge of Finance and Administration for the Petroleum Hub Development Corporation (PHDC) in line with Section 16(1) of the legislation that established the PHDC, Act 1053. According to asaaseradio.com, Mr. Nyarko’s appointment letter was signed by Nana Asante Bediatuo, Secretary to the President, and he is expected to act “pending receipt of the constitutionally required advice of the governing board of the corporation, given in consultation with the Public Services Commission” or PSC. Patrick Nyarko is also instructed to indicate, in writing, his acceptance or otherwise of the appointment within 14 days of receiving the engagement letter. He is currently serving as a Board Member of the Public Utilities Regulatory Commission (PURC). Profile Patrick Nyarko is an experienced financial service and energy professional with expertise in balance sheet management, financial analysis, credit analysis, insurance, energy policy analysis and sustainability strategy. Until this latest appointment, he was the maiden Director for Environment, Health and Safety at the Ghana Integrated Iron and Steel Development Corporation (GIISDEC), taking up the job in March 2022. He previously served as the maiden Director for Corporate Affairs and International Relations at GIISDEC, beginning in September 2020. From September 2019 through to August 2020, Mr Nyarko was the Director of Strategy and Policy at the Kandifo Institute, governance and policy think tank based in Accra, and simultaneously, between April 2019 and August 2020, an Energy Policy Analyst/Consultant with Baobab Energy Consult. In the banking sector, Nyarko has worked as the Regional Sales and Relationship Officer in the consumer banking department of GCB’s regional office in Cape Coast, and as a Sales Manager/Personal banker with Barclays Ghana from 2016 to 2017, gaining experience in various departments, including retail and corporate banking as well as credit risk. He is a member of the board of directors/commissioner for the Public Utilities Regulatory Commission (PURC), a position he has held since November 2021. Patrick Nyarko holds a BSc in Management with Computing from Regent University College, Ghana, an MBA in Oil and Gas Management from Coventry University in the UK and an MSc in Strategy and International Business from Aston University in Birmingham, also in the UK.   Source: https://energynewsafrica.com    

Ghana: ECG Assures Akwamufie, Juapong, Others Of Restoration Of Power Supply Soon

Michael Creg Afful
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Ghana: ECG Assures Akwamufie, Juapong, Others Of Restoration Of Power Supply Soon
The Electricity Company of Ghana (ECG), Tema Region, has explained that the recent power outage in parts of the Eastern Region is due to a technical challenge at its Kpong Bulk Supply Point. Areas currently without power are Senchi, Attimpoku, Juapong, Volo, Podoe, Asikuma, Anum, Boso, Dodi, Asantekrom, Akwamufie, Asutsuare, Yilo Krobo, Lower Manya Krobo and Golden Exotics. Other areas are Commandos, Military Training Camp, Glamour Farms, Wildlife, PW Quarries, Gokay Quarries, Recycling, Eastern Quarries and its environs. In a statement on Monday, ECG assured the affected areas that their engineers are working assiduously to rectify the challenge and restore the power supply. “ECG regrets the inconvenience caused to the affected customers,” the statement said.   Source: https://energynewsafrica.com    

IEA Launches Tool To Track Financing Costs For Energy Projects

Michael Creg Afful
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The International Energy Agency and several partners have launched a new tool to track financing costs for energy projects around the world to identify and address risks that impede vital investment flows to emerging and developing economies.  The Cost of Capital Observatory was developed by the IEA, together with the World Economic Forum, ETH Zurich and Imperial College London. It will be hosted on the IEA’s website and regularly updated with new data, analysis and features. The IEA website will also host an interactive Cost of Capital Dashboard to dig into data for selected countries. A Critical Lever To Attract Capital Despite having two-thirds of the global population, emerging and developing economies, excluding China, account for less than one-fifth of global investment in clean energy. One of the key barriers is the high cost of capital, reflecting some real and perceived risks about investment in these economies.  Bringing down the cost of capital is a critical lever to attract funds, especially private capital. Policymakers use this information to ensure that investments are remunerated in a fair manner, especially when it comes to sectors or projects that need any kind of government support. However, there is a lack of transparency about the cost of capital, making it harder for investors to price risk and for policymakers to act. The new Observatory has been established to fill this gap. “A high cost of capital is a roadblock for investors and the data provided by our Observatory is essential to understand how this roadblock can be dismantled,’’ said IEA Executive Director Dr. Fatih Birol. “This will allow more capital to flow to clean energy, where it is urgently needed to tackle today’s energy crisis and reach sustainable development goals.”  Financing Costs Still A Deterrent Bringing down the cost of capital would make a huge difference to the overall costs of energy transitions. According to new IEA estimates, reducing financing costs by 2 percentage points would bring down the investment needed to reach net-zero emissions in emerging and developing economies by a cumulative $16 trillion over the period to 2050. The IEA estimates that global clean energy investment will increase by more than 10% in 2022 to reach a total of $1.4 trillion, but this is due almost entirely to advanced economies and China. Meanwhile, despite some bright spots, clean energy spending in emerging and developing economies outside China remains at 2015 levels. Many countries find themselves in a trap, with underdeveloped financial markets deterring investment and a lack of projects preventing the establishment of reliable pricing benchmarks.  IEA analysis, based on surveys of investors and experts in different countries, has shown that the cost of capital for a utility-scale solar PV plant in 2021 was between two and three times higher in key emerging economies than in advanced economies and China. As a result, financing costs accounted for around half of the total levelised costs of a solar PV plant, notably higher than the 25% to 30% seen in advanced economies and China.

Climate Campaigner Accuses UK Of Giving ‘Two Fingers Up’ To Climate With New Oil And Gas Licenses

Michael Creg Afful
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Climate campaigners have condemned the United Kingdom for its decision to open up a new licensing round for oil and gas fields in the North Sea, saying the decision signifies the Conservative government’s blatant disregard for the climate emergency and warnings against fossil fuel exploration from energy experts and scientists. Claiming new oil and gas drilling will not undermine the country’s stated plan to cut its carbon emissions to net-zero by 2050, the North Sea Transition Authority (NSTA) said it will issue up to 100 licenses for nearly 900 exploration areas, including several that are known to contain hydrocarbons. In response to Climate Minister Graham Stuart’s claim that the plan is “actually good for the environment” because using fossil fuels in the North Sea negates the need for foreign gas, Friends of the Earth (FOE) Scotland accused the government of “sticking two fingers up to climate scientists and energy experts.” “By encouraging greedy fossil fuel companies to keep looking for more fossil fuels, the U.K. government is denying the reality of the climate emergency,” said Freya Aitchison, an oil and gas campaigner for the group. “Instead of new fossil fuels, we urgently need a transition to an energy system powered by renewables, and a mass rollout of energy efficiency measures to reduce energy demand.” “With the cost-of-living skyrocketing due to the volatile prices of oil and gas, it’s obvious that our current energy system is completely unfit for purpose, serving only to make oil company bosses and shareholders richer while everyone else loses out,” she added. Russia’s invasion of Ukraine has sent energy prices soaring for households across Europe, but the climate action campaign Paid to Pollute warned that licensing oil and gas fields in the North Sea will do nothing to alleviate the cost of living crisis. The plan is moving forward “under the pretext of energy security,” a campaigner for the group said in a video posted to social media, “but another North Sea licensing round won’t deliver U.K. energy security.” “The North Sea is an aging and oil-heavy basin,” he continued. “The bald truth? The U.K. has burned most of its gas. Any new gas that is found won’t be produced for years and years.” As the U.K. Committee on Climate Change said earlier this year, it takes an average of about 28 years for oil and gas production to begin from the time an exploration license is issued. U.K. Green Party co-leader Adrian Ramsay called the news of the latest licensing round “deeply distressing.” “The government’s claim that burning ever more fossil fuels from the North Sea will help the U.K. meet its international obligations to become net-zero by 2050 has no connection to reality,” Ramsay said on social media. The new licenses are being offered nearly a year after grassroots campaigners were credited with pressuring Shell Oil to pull out of a plan to drill in the proposed Cambo oil field in the North Sea off the coast of Scotland’s Shetland Islands. FOE Scotland called on Scottish First Minister Nicola Sturgeon, who opposed the Cambo proposal, to stand up to the NSTA’s “reckless plans to expand fossil fuels in the North Sea.” “These announcements risk locking us into a climate-destroying energy system for decades to come,” said Aitchison, “entrenching reliance on this volatile industry in places like Aberdeen,and leaving people all across Scotland exposed to rocketing energy bills.”        

UK Defies Climate Warnings With New Oil And Gas Licenses

Michael Creg Afful
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The UK has opened a new licensing round for companies to explore for oil and gas in the North Sea. Nearly 900 locations are being offered for exploration, with as many as 100 licences set to be awarded. The decision is at odds with international climate scientists who say fossil fuel projects should be closed down, not expanded. They say there can be no new projects if there is to be a chance of keeping global temperature rises under 1.5C. Both the Intergovernmental Panel on Climate Change (IPCC), the global body for climate science and the International Energy Agency (IEA) have expressed such a view. Business Secretary Jacob Rees-Mogg says the new exploration will boost energy security and support skilled jobs. And supporters of new exploration insist it is compatible with the government’s legal commitment to reach net zero greenhouse gas emissions by 2050. They say the North Sea fossil fuel will replace imported fuel and so have a lower carbon footprint in production and transportation. Licenses are being made available for 898 sectors of the North Sea – known as blocks. “Putin’s illegal invasion of Ukraine means it is now more important than ever that we make the most of sovereign energy resources,” Mr. Rees-Mogg said in a statement. The licensing process will be fast-tracked in parts of the North Sea that are near existing infrastructure and so have the potential to be developed quickly, according to the North Sea Transition Authority. It says the average time between discovery and first production is close to five years, but that gap is shrinking. Both campaigners and the oil industry agree that the reserves will not be large enough to have a significant impact on the prices consumers pay for energy in the UK. “This government’s energy policy benefits fossil fuel companies and no-one else,” said Philip Evans, energy transition campaigner for Greenpeace UK. “New oil and gas licences won’t lower energy bills for struggling families this winter or any winter soon nor provide energy security in the medium term,” he added. North Sea oil and gas production peaked about 20 years ago and since then the UK has gone from producing more oil and gas than it needs, to importing it from other countries. Offshore Energies UK, which represents the oil and gas industry say there could be as much as 15 billion barrels of oil left in the North Sea. It says that new fields will be less polluting than their predecessors and, in a statement, said there would be an environmental “bonus”. The decision to launch a licensing round follows the publication of the government’s “Climate Compatibility Checkpoint“, which “aims to ensure” the new exploration aligns with the UK’s climate objectives. The checkpoint criteria covers emissions from oil and gas production and how those emissions compare internationally but take no account of the carbon dioxide emitted when the oil and gas are burnt.   Source: BBC
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