NORTH Sea-focused Cluff Natural Resources has said the UK must maximise the production of gas in its waters to minimise reliance on supplies from overseas amid efforts to tackle climate change.
The company’s chairman Mark Lappin noted the Committee on Climate Change had recognised oil and gas would account for the bulk of the country’s energy needs while efforts are made to reduce net carbon emissions to zero by 2050.
Mr Lapping said the Committee had produced a report that was generally thorough and thoughtful and that recognised ‘net zero’ did not mean the end of hydrocarbon production.
However, Mr Lappin observed: “ The key difference between the Climate Change Committee and our own view is that instead of becoming increasingly reliant on imports from overseas we should be focussing on national production and consumption of natural gas from the United Kingdom Continental Shelf.”
He added: “A domestic supply of natural gas is good for jobs, good for tax receipts and the balance of payments, as well as being better for the environment compared with importing gas from as far afield as the Middle East and South America.”
Mr Lappin made his comments on a day the Brent crude price surged 20 per cent in early trading after drone strikes on Saudi Arabian facilities at the weekend led to the interruption of 5.7 million barrels of crude oil production per day. That is equivalent to more than five per cent of the world’s daily supply.
Analysts said the long term impact of the events in Saudi Arabia on oil prices may be limited given the uncertain outlook for the global economy. The events could lead to renewed debate about the importance of UK production nonetheless.
An Australian firm yesterday showed belief in the potential of the United Kingdom Continental Shelf (UKCS) by agreeing to buy in to acreage west of the gas-rich Morecambe Bay.