Britain faces North Sea blow as UK’s largest oil giant snubs investment over windfall tax
While the Government has launched there fresh oil and gas exploration rounds in response to Russia’s manipulation of natural gas supplies, expert say that it is unlikely this would significantly lower prices in the UK, as they are set by international markets.
Meanwhile, Offshore Energies UK, the industry trade body, has argued that North Sea production is still vital to reduce reliance on imports, as the UK imported 62 percent of its gas and 18 percent of its oil in 2021, according to their report.
They estimate that the UK still has approximately 15 billion barrels of oil that could still be extracted from the North Sea, adding that with a £26billion investment this decade, the UK could meet half of its domestic oil and gas demand by 2030.
While this would significantly boost the UK’s energy security, Offshore Energies admits that after five decades of exploration, the North Sea is declining. They estimate that output has been falling by about five percent every year, while the deposits still in the field are getting harder to extract.
Article source: https://www.express.co.uk/news/science/1710511/north-sea-blow-harbour-energy-giant-snubs-uk-windfall-tax-licensing