The Prime Minister confirmed on Monday 31 July that hundreds of new oil and gas licences will be granted in the UK, as the UK Government continues to back the North Sea oil and gas industry as part of a drive to make Britain more energy independent.
Prime Minister, Rishi Sunak, says that when the UK reaches net zero in 2050, a quarter of our energy needs will still come from oil and gas. He says by not relying on foreign dictators for energy, it is better for the environment.
In 2022, the UK imported about 37% of its energy. That represents a drop from nearly 50% in the early 2010s, but the figure is still higher than in the late 1990s when the UK was a net exporter which meant it sent more energy abroad than it imported. *
Downing Street also confirmed that millions of pounds will be made available for a new carbon capture scheme in north-east Scotland. On carbon capture, Sunak said that funding will be available for firms with a "sound business case", describing it as "great and exciting news" and saying it will support the transition to net zero.
What is Carbon Capture and Storage (CCS)?
When fossil fuels such as coal, oil or gas are burnt, they release carbon dioxide (CO2). With CCS, instead of being released into the atmosphere, the CO2 is removed before it emits from the chimney. This CO2 is compressed and moved by pipelines to the North Sea or East Irish Sea and then buried deep down, 2-3km, beneath the seabed. The carbon capture process stops most of the CO2 produced from being released, and either re-uses it or stores it underground.
Our sustainability adviser, Philip Chapman, said: “Energy security is an issue that the Government should be taking very seriously. The UK needs energy independence and we have seen how the impact of Russia’s war on Ukraine has driven up oil and gas prices globally and increased consumer costs in the UK. We believe that reducing our reliance on external sources of fossil fuels is the right thing to do. The question is how the use of fossil fuels still fits into our energy transition.
“The growth we have seen in renewable energy in the UK provides the most sustainable route to net zero and reducing our carbon emissions. In 2022, 42% of the UK’s electricity was generated by renewables and 40% was generated from fossil fuels**, compared with 2012 levels, 67% was from fossil fuels and 11% from renewables,*** so you can see how far the UK has come.
“The use of wind and solar power has increased rapidly in this time, supplemented by other forms of renewables and more recently grid support schemes i.e., battery energy storage systems. Despite this, the role of fossil fuels still lingers and has now been given greater prominence within this transition process.”
Rishi Sunak insists he is still committed to net zero but wants to reach it in a way that’s “pragmatic” and “proportionate”.
Philip added: “The UK’s pathway to net zero via renewable energy continues alongside this week’s news. At Fisher German, we are committed to guiding our clients towards cleaner and greener forms of energy. This is something we have done since the turn of the century, are doing now and will continue to do into the future.
“The future of our energy is in renewables and not fossil fuels. The Government is, in their view, taking a pragmatic approach to net zero which still requires the use of fossil fuels and CCS. The investment announced shows that the Government is still committed to fossil fuels in the short to medium term to secure the UK’s energy supplies. One wonders that if this level of investment was given to the renewables industry instead of fossil fuels, what message that would send to the global community and the UK’s commitment to reduce carbon emissions?”
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*Source: Department for Energy Security and Net Zero).
** Source: Energy-UK https://www.energy-uk.org.uk/insights/electricity-generation/
*** Source: Department for Energy Security and Net Zero
