UK releases environmental guidance that will impact North Sea drilling

The UK published environmental guidelines on Thursday, which will impact future developments of two North Sea oil and natural gas fields. Shell and Equinor are among the companies that are expected to benefit.

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

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.

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.

A Scottish court ruled in January that Britain's approval of Shell's Jackdaw project and Equinor Rosebank project in the North Sea was illegal and had to be reversed. (Reporting and editing by William James)

(source: Reuters)