Oil from new North Sea licences would account for under 1% of fuel in 2030, analysis finds

dailyrecord.co.uk:

Oil from new licences granted to North Sea producers and sent to UK refineries would account for less than 1 per cent of the fuels used here in 2030, analysis has found.The Energy and Climate Intelligence Unit (ECIU) said new projects like Rosebank would therefore make little difference to the UK’s energy independence and security – one of the Government’s key arguments for supporting further production.It has also said North Sea oil and gas would reduce the UK’s reliance on imports and therefore reduce the emissions involved in shipping.

In answer to a written parliamentary question, the Government accepted that around 80 per cent of the oil produced in the UK is refined overseas into products that are then shipped back over.It also said “it is not desirable to force private companies to ‘allocate’ oil and gas produced in the North Sea for domestic use”, appearing to admit that much of the oil produced by Rosebank and other projects would be sold abroad.The Government is also trying to pass legislation, due in the Commons on Monday, that would require the North Sea regulator to invite applications for new oil and gas licences on an annual basis instead of the five-year average currently in place.Critics have accused the Government of backing new production as a way to create a dividing line with Labour as a general election approaches.Professor Gavin Bridge, fellow of the Durham Energy Institute at Durham University, said: “The reality is very little of the oil pumped from the North Sea is refined and sold on British soil, and even then the price is largely dictated by international markets.“The notion that more drilling on the continental shelf boosts our energy security doesn’t stand up to scrutiny.