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FX.co ★ Nicola Sturgeon calls on UK to review oil and gas licenses

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Forex Analysis:::2021-08-13T10:29:56

Nicola Sturgeon calls on UK to review oil and gas licenses

Nicola Sturgeon calls on UK to review oil and gas licenses

Days after UN warned that dire consequences would occur if governments do not make drastic moves to cut emissions, Scotland's First Minister Nicola Sturgeon called on the UK to review its oil and gas licenses. She wrote a letter to UK Prime Minister Boris Johnson to voice questions about the climate emergency and its urgent solution.

Sturgeon particularly mentioned the oil and gas fields in UK that have been licensed but not yet developed. An example of this is the huge Cambo oil field that is at the west of Scotland. Final investment decision for the field is scheduled to be adopted later this year, as it was delayed in 2020 due to COVID-19.

Nicola Sturgeon calls on UK to review oil and gas licenses

The government did not immediately respond to a request for comment.

But spokesman Max Blain told reporters that the decision to develop Cambo will soon become part of the energy mix, with a gradual transition to renewables.

Earlier this year, the UK government devised a way to transform the North Sea into a basin that produces hydrogen and renewable energy, as well as conserves CO2 from carbon capture projects. Also, Energy Secretary Anne-Marie Trevelyan did not rule out a ban on new exploration licenses in the future, which Denmark has already done on the other side of the North Sea.

The Cambo field is one of the UK's largest potential oil and gas projects, although globally it is a relatively minor development. The first stage of development is planned to target 170 million barrels of oil equivalent, which is enough to meet global consumption for less than two days.

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