A statement sent to Rigzone by industry body Offshore Energies UK (OEUK) on Wednesday announced that leaders from across industry, academia, and civic society are \u201curging the UK government to strengthen national resilience by prioritizing homegrown energy, from oil and gas to renewables\u201d.<\/p>\n
\u201cThey join manufacturers, renewables developers, offshore operators and civic groups in calling for a pragmatic approach to building out renewable energy while maintaining the homegrown oil and gas the UK needs for decades to come,\u201d the statement, which said instability in the Middle East highlights the UK\u2019s growing reliance on energy imports, noted.<\/p>\n
OEUK pointed out in the statement that current projections show that, by 2030, the UK will rely on LNG from places like Qatar and the U.S. for more than a quarter of its gas and for almost half by 2035, \u201cup from around 14 percent last year\u201d. The industry body said LNG cargoes are traded globally and are four times more carbon intensive than homegrown gas. It added that these cargoes can be diverted away from the UK during periods of high international demand, \u201cincreasing the risk of price spikes and supply shortages\u201d.<\/p>\n
In the statement, OEUK highlighted that the UK is transitioning towards greater use of renewables but said the nation also has a critical demand for oil and gas, which it added provide three quarters of the UK\u2019s total energy \u201cand underpin critical industrial manufacturing and the electricity grid\u201d.<\/p>\n
\u201cThe question facing policymakers is not whether the nation will continue to use oil and gas, but where it will come from and what this means for future security, jobs, emissions and the economy,\u201d OEUK said in the statement.<\/p>\n
OEUK went on to note that industry is asking for reform of the Energy Profits Levy (EPL), also known as the windfall tax, and early introduction of the government\u2019s Oil and Gas Price Mechanism (OGPM) \u201cto stimulate investment in the UK\u2019s domestic oil and gas production\u201d. This would boost energy security, secure jobs, and unlock up to GBP 50 billion ($66.4 billion) of private investment and\u00a0GBP 15 billion ($19.9 billion) in tax receipts over the next decade, according to OEUK.<\/p>\n
\u201cConflict in the Middle East highlights again the UK\u2019s growing challenge of where and how it gets its energy,\u201d OEUK CEO David Whitehouse said in the statement.<\/p>\n
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\u201cWhile we mustn\u2019t lose perspective as lives are lost across that region, there are inescapable real-world consequences for our security of supply,\u201d he added.<\/p>\n
\u201cThis is now the second global energy shock in just four years. It underscores the risks to the UK and across wider Europe of a system that favors increasing reliance on imports – which now make up more than 40 percent of our energy in the UK. It is right that we take stock and learn lessons,\u201d he continued.<\/p>\n
Whitehouse went on to state that \u201cthe solution is backing homegrown energy and our people with practical policy reform\u201d.<\/p>\n
\u201cOnly by making the most of all forms of domestic production, from oil and gas to our world class renewables sector can we weather the challenges of today and seize the opportunities of tomorrow,\u201d he added.<\/p>\n
\u201cOil and gas still supply around 75 percent of UK energy and will still supply a fifth of demand in 2050 even with the build out of our world class renewable sector,\u201d he said.<\/p>\n
\u201cThe question is not whether we will continue to use oil and gas, but where it comes from and what this means for our future security, emissions and economy,\u201d he noted.<\/p>\n
\u201cA secure, reliable energy system requires a partnership between government and industry. We need a pragmatic partnership that accelerates our economic and climate goals, protects jobs, and ensures we always have homegrown energy to rely on,\u201d Whitehouse concluded.<\/p>\n
In a statement posted on Scottish Renewables\u2019 website on March 15, Scottish Renewables Chief Executive Claire Mack said, \u201cnow more than ever we must double down on capturing our homegrown energy potential to reduce the impact of global volatility\u201d.<\/p>\n
Stephen Phipson, the CEO of manufacturers association Make UK, said in a statement posted on the group\u2019s website on March 13 that \u201censuring the UK has access to its own energy reserves is now vital\u201d.<\/p>\n
Rigzone has contacted the UK Department for Energy Security and Net Zero (DESNZ) and HM Treasury (HMT) for comment on OEUK, Mack, and Phipson\u2019s statements. At the time of writing, neither have responded to Rigzone.<\/p>\n
A release posted on the UK government\u2019s website on March 15 revealed that UK Energy Secretary Ed Miliband was setting out \u201can accelerated package of energy interventions to boost the UK\u2019s energy security\u201d. This package included the intention to bring forward the government\u2019s next annual renewables auction to July, the release outlined.<\/p>\n
To contact the author, email\u00a0andreas.exarheas@rigzone.com<\/a><\/p>\n
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