UK plans new environmental guidelines for North Sea oil and gas firms

The UK government plans to introduce new environmental guidance for oil and gas companies operating in the North Sea following a landmark Supreme Court ruling requiring regulators to consider Scope 3 emissions from future projects when approving them .

The UK Supreme Court ruled in June that a local council had unlawfully given approval to an onshore oil drilling project because planners must have taken into account emissions from the future use of oil as fuel, in a landmark case which could disrupt new UK oil and gas project plans.

The judges wrote in the ruling that “It is an agreed fact that, if the project goes ahead, it is not only probable, but inevitable, that the oil produced from the wellhead will be refined and, as an end product, subjected to combustion in the follow. and that burning will produce greenhouse gas emissions.”

In light of the ruling, the Labor government announced on Thursday that it plans new environmental guidelines for oil and gas companies, which the cabinet says would help “to ensure industry stability, support investment, protect jobs, economic growth and upon its fulfillment. climate obligations as the North Sea transitions to its clean energy future.”

Energy Minister Michael Shanks said:

“We will be consulting at pace on new guidance that takes account of the Supreme Court ruling on environmental impact assessments to enable industry to plan, deliver jobs and invest in our economy.”

As it plans new environmental guidance to provide certainty to industry, the government also said in the same release it would not challenge judicial reviews of the development agreement for the Jackdaw and Rosebank oil and gas fields in the North Sea, throwing further uncertainty over them. already agreed projects.

Climate groups Greenpeace and Uplift sued to seek judicial reviews to stop the development of Rosebank and Jackdaw.

Earlier this week, Equinor, the operator of Rosebank, said it was awaiting clarification on the UK tax regime from the Labor government before strategizing and committing to investing in the UK North Sea.

By Charles Kennedy for Oilprice.com

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