UK Issues Environmental Guidance on New North Sea Oil and Gas Drilling

The UK published long-awaited guidance on environmental issues that will impact future developments of two North Sea oil and natural gas fields, including Shell and Equinor.

The guidelines explain how future government decisions on extraction should treat greenhouse gas emissions from oil and gas, also known as downstream emissions or Scope 3.

The government ordered the document after a Supreme Court decision last year that said planning authorities had to consider the impact of greenhouse gas emissions when approving a well near Gatwick Airport.

Michael Shanks, energy minister at the Department of Energy, said in a press release that "this new guidance provides clarity on the future for the North Sea Oil and Gas Industry following the Supreme Court's ruling last year."

It is a significant step in ensuring that the full impacts of oil and natural gas extraction for potential projects are taken into consideration and we can ensure a managed and prosperous transition to a clean energy future in the North Sea, in accordance with science.

In order to achieve its 2050 climate goal of net zero emissions, the British Labour government pledged last year that it would not grant any new oil or gas licenses.

The new guidelines will apply to licenses already awarded, including Shell's Jackdaw project and Equinor's Rosebank and Ithaca Energy and Ithaca Energy projects.

Requests for comments were not immediately responded to by the companies.

A Scottish court ruled in January that Britain's approval of Shell's Jackdaw project and Equinor Rosebank's North Sea projects was illegal and had to be reversed.

The new rules will force oil and gas companies to be honest about the damage they cause to the climate, said Tessa Khan. Uplift is an environmental group that initiated the legal action along with Greenpeace.

Developers will need to submit applications. The final decision is expected to be made by Britain's Energy Minister Ed Miliband at the latest in the fall.

Miliband has often spoken about the need for the country to reduce its dependence on fossil fuels in order to lower costs and improve energy safety, but he has also stated that oil and gas will continue to play a part in the economy of the country for many years.

(source: Reuters)