Shell Is Reconsidering Its Decision To Pull Investment From Oil Field Of Shetland
Previously energy giant Shell has decided to exit from a large oil field in the UK. It is located 75 miles away from the west coast of Shetland. But now they are reconsidering the decision.
Earlier Shell said that due to economic issues it was withdrawing from the Cambo oil field. The company also mentioned that it causes some possible regulatory delays and they want to recover them. At that time, the price of crude oil was under $70 a barrel. The price has become double and consistently been over $100. Now the oil prices are fluctuating due to the Russian invasion of Ukraine. Experts are predicting that Russian oil will either raise or reduce. Because Russian exports are highly dependent on Europe which can influence the oil price. Many European countries including the UK government are trying to increase investment in domestic fossil fuels.
However, Shell has not sold its interests in the field yet. The company said, “the economic, political and regulatory environment had changed enormously since the decision was announced just three months ago.” The energy giant has resubmitted an application to develop the Jackdaw North Sea gas field which is situated on the east coast of Scotland.
But Shell mentioned that it had modified the chemical processes. To meet regulatory requirements, it has changed the gas extraction technique. Shell’s decision was roundly welcomed by environmental campaigners.
The director of the environmental group Uplift Tessa Khan said, “Contrary to what [Business Secretary] Kwasi Kwarteng has said, this isn’t ‘our oil’.” She also said, “What it will do is produce carbon emissions equivalent to 18 coal-fired power stations, when we are already experiencing the impacts of the climate crisis. Cambo makes as little sense today as it did last year.”