[ad_1]
London
CNN Business
–
The UK government can award more than 100 new oil and gas companies license to drill in the North Sea, as it looks for ways to strengthen energy security amid a global supply crunch.
The licensing round, which began on Friday, will not lead to a new UK product for several years. And when drilling begins, Britain will still be dependent on energy imports, according to the government, leaving it vulnerable to rising prices and supply disruptions that threaten blackouts this winter.
UK utilities company National Grid (NGG) warned on Thursday that the worst of the extreme cold weather could leave homes and businesses without power for up to three hours at a time. Low levels of wind, gas shortages and the inability to import electricity from Europe. It said it would take steps to mitigate the risk, including bringing old coal-fired power stations back online if necessary.
From November 1, the National Grid will also offer financial incentives to customers to reduce power consumption during peak hours.
Kathryn Porter, an energy consultant at Watt-Logic, told CNN Business that the National Grid is still underestimating risks to supply, but a blackout for homes is unlikely because it can disconnect large energy users at peak times if necessary.
The latest licensing round will not improve supply immediately Image and may face a legal challenge from environmental activists. Greenpeace said the new oil and gas licenses were “potentially illegal” and that it was exploring ways to take action.
“New oil and gas licenses will not reduce energy bills for struggling households this winter or any winter soon, and will not provide energy security in the medium term,” Greenpeace UK energy transition campaigner Philip Evans said in a statement.
“New licenses – and more importantly more fossil fuels – will not solve any of those problems but will make the climate crisis worse,” he added.
Analysis by the North Sea Transition Authority (NSTA), the regulator that issues licenses, shows the average time between discoveries of oil and gas deposits. And first production is close to five years away, although that gap is “shrinking.”
In a statement on Friday, the NSTA said it will prioritize areas in the southern North Sea that can be developed quickly and where gas has already been discovered. Companies have until January 12 to apply for licences, with permits expected to be issued As soon as the second quarter of 2023.
The NST said the licensing round is subject to a “climate compatibility check” to ensure it aligns with the UK government’s commitment to reach net zero carbon emissions by 2050. It added that producing gas locally has a much lower carbon footprint than imports. abroad
The International Energy Agency said last year that investment in new fossil fuel supply projects, including drilling for oil and gas, must be stopped immediately if the world is to limit global warming to 1.5 degrees Celsius above pre-industrial levels.
The UK government earlier this year set out plans to generate 95% of Britain’s electricity from low-carbon sources by 2030. The plan, which allows drilling for oil and gas, will also boost nuclear power and wind power.
[ad_2]
Source link
