Scottish minister praises Shell’s ‘welcome’ decision to quit controversial North Sea oil field
Scottish government minister says Shell’s decision to quit controversial North Sea oil field which was set to create 1000 jobs is both ‘welcome’ and ‘necessary’ but also a ‘challenge’
Scottish Government minister celebrated Shell’s ‘welcome’ decision to pull out of the Cambo oil field project The £1.9billion North Sea development 75 miles off the coast of Scotland was thrown into doubt last nightOil giant Shell, which had a 30 per cent stake, says economic case for involvement is no longer strong enoughEnvironmentalists claim the oil project could ‘contribute to the climate crisis’ and endanger rare animalsBut its supporters say Cambo would have created 1,000 jobs and produced billions of barrels of oil
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A Scottish Government minister today celebrated Shell’s ‘welcome’ and ‘necessary’ decision to pull out of the Cambo oil field project.
The £1.9billion North Sea development 75 miles off the coast of Scotland has been thrown into doubt after the oil giant dramatically quit last night.
Furious Scottish Conservatives have claimed that First Minister Nicola Sturgeon contributed to the decision by announcing she would not support Cambo or other new oil fields while at the Cop26 climate summit in Glasgow.
Shell, which had a 30 per cent stake in Cambo, insisted the economic case for involvement was no longer strong enough and warned of the potential for delays. But its supporters argue Cambo would create 1,000 jobs and thousands more in the supply chain, produce up to 170 billion barrels of oil over 25 years – enough to power the UK for four months – and produce enough gas to produce 1.5 million homes for a year.
It is feared that if the project derails, the UK will become more reliant on imported oil and its ability to act independently on the world stage would be diminished.
Environmentalists have opposed the project, saying it could ‘contribute to the climate crisis’ and threaten hundreds of species including protected deep sea sponges by cutting through around 22 miles of the Faroe-Shetland Sponge Belt, a UK Marine Protected Area.
Zero carbon buildings minister Patrick Harvie, the Green MSP for Glasgow, this morning called Shell’s decision ‘welcome news’ and ‘necessary’.
‘It’s a challenge to all of us to recognise that the world is now finally, at long last, after decades of effort by the fossil fuel industry to slow this down, to deny the problem and to distract us from it, the world is finally moving away from fossil fuels,’ Mr Harvie told Radio 4’s Today programme.
Zero carbon buildings minister Patrick Harvie, the Green MSP for Glasgow, this morning called Shell’s decision ‘welcome’. He said the planet is ‘finally moving away from fossil fuels’ and called for ‘massive investment in the sustainable industries of the future’
The £1.9billion North Sea development 75 miles off the coast of Scotland was thrown into doubt after the oil giant, which had a 30 per cent stake in Cambo, dramatically quit last night. Shell insisted the economic case for involvement in the site was no longer strong enough and warned of the potential for delays
Environmentalists claimed that the project could ‘contribute to the climate crisis’ and threaten hundreds of species including protected deep sea sponges by cutting through around 22 miles of the Faroe-Shetland Sponge Belt, a UK Marine Protected Area
However, its supporters insisted that Cambo would have created 1,000 jobs and thousands more in the supply chain. The development could also produce up to 170 billion barrels of oil over 25 years – enough to power the UK for four months (stock)
‘That means that we need massive investment in the sustainable industries of the future.’
Liam Kerr, Scottish Conservative shadow cabinet secretary for net zero, energy and transport, blamed the First Minister for Shell’s decision.
‘Recently, Nicola Sturgeon’s language about oil and gas has been more harmful than helpful. This will no doubt make it harder for energy companies to invest in oil and gas, and the skills and technology needed to reach carbon net zero,’ he said.
‘Cambo will be massively beneficial to our economy, securing our domestic supply of oil and gas while demand is still high. The industry supports 100,000 Scottish jobs and is crucial to the energy transition.
‘It’s obviously disappointing Shell have pulled out from Cambo but it is a business decision for them to make.’
A climate assessment is currently being carried out on Cambo and the Oil and Gas Authority is expected to tell ministers whether it will be given the green light within weeks.
Jonathan Roger, chief executive of Siccar Point Energy, said: ‘Cambo remains critical to the UK’s energy security and economy… We will continue to engage with the UK Government and wider stakeholders on the future development of Cambo.’
A Shell spokesman said continued investment in oil and gas remains ‘critical’ to keep the lights on, adding: ‘We believe the North Sea – and Shell in it – have a critical role to play in the UK’s energy mix, supporting the jobs and skills to enable a smooth transition to Britain’s low-carbon future.’
Ed Miliband, shadow secretary of state for climate change and net zero, said the move was a ‘significant moment in the fight against the Cambo oil field’.
‘It makes no environmental sense and now Shell are accepting it doesn’t make economic sense,’ he said.
‘Ploughing on with business as usual on fossil fuels will kill off our chances of keeping 1.5 degrees alive and carries huge risks for investors as it is simply an unsustainable choice.
‘Shell have woken up to the fact that Cambo is the wrong choice. It’s long past time for the Government to do so.
‘The right choice for the UK’s future energy security is to rapidly accelerate renewable alternatives and ensure we protect the interests of oil and gas workers with a just transition.
‘Britain could lead the world in the global race for green energy and a Labour government will make the necessary investment in the transition, ensuring we protect workers and communities.’
In November, as Cop26 ended in Glasgow, Ms Sturgeon voiced her strongest opinion so far on the proposed development, saying: ‘I don’t think that Cambo should get the green light.’
She had previously urged the UK Government to reassess the plans, amid growing concern over the impact of fossil fuels on climate change.
Private equity firm Siccar Point Energy, which owns a majority stake in the field, said it was ‘disappointed at Shell’s change of position’, but added: ‘We will continue to engage with the UK Government and wider stakeholders on the future development of Cambo.’
Scottish Greens energy and climate spokesperson Mark Ruskell MSP said: ‘Today’s news shows that Scotland is approaching the end of the age of oil and gas, and it is time that governments started planning accordingly.
‘For a company like Shell to publicly state that it is not economically viable to extract oil from this site is hugely significant.
‘Scotland has the potential to lead Europe in offshore renewables, with 25% of the continent’s offshore renewable energy potential.
Critics claimed First Minister Nicola Sturgeon had contributed to the decision by announcing she would not support Cambo or other new fields
The oilfield, which will emit more than three million tonnes of carbon during its lifespan, could operate until 2050 – by which time Britain has vowed to be net carbon neutral. Pictured: Another oil rig
‘So, in the wake of this announcement it’s clear that the UK Government must divert support that has previously been targeted at oil and gas toward industries of the future. It is vital that work on building a just transition for workers in Scotland’s energy industry begins now.
‘We know that hundreds of thousands of jobs will be created in Scotland’s renewable future, and there’s no time to waste.’
Scotland’s Net Zero Secretary had sparked a political row after saying oil and gas extraction in an independent Scotland would continue.
As part of the co-operation agreement that gave the Greens two ministers in the Scottish Government, the future of oil and gas is a position where the two sides do not have to agree.
Net Zero Secretary Michael Matheson told The Scotsman newspaper that an independent Scotland would continue drilling for oil and gas.
‘We’re still some way off from decarbonising our society and we will still require an access to a level of hydrocarbons,’ he said.
Campaigners claimed that pipelines to export the oil from the Cambo field would cut through the Faroe-Shetland Sponge Belt, home to rare deep-sea sponges, known as ‘cheese-bottoms’ by fishermen, and ocean quahogs.
A review from the Environmental Law Alliance Worldwide (Elaw) warns that the Cambo project ‘could jeopardise hundreds of species over several decades, as well as livelihoods’.
Sixteen marine protection and climate groups, including Greenpeace UK, WWF UK, the Marine Conservation Society and Friends of the Earth Scotland, wrote to the UK Government’s offshore oil and gas environmental regulator, Opred, asking it to include marine impacts when assessing the Cambo drilling application.
They raised concerns about the likely impacts the pipelines would have on the seabed, on hundreds of marine species and on the local fishing industry, and underline the devastation that an oil spill in the area would cause.
