Latest news with #OffshoreEnergiesUK
Spectator
8 hours ago
- Business
- Spectator
Trump is right about North Sea oil
Maybe it is Donald Trump's way of getting back at Keir Starmer for Labour sending activists to campaign for Kamala Harris in last year's presidential election. Either way, the US president seems to have no intention of obeying the convention that leaders of democratic do not delve into the domestic politics of their counterparts in other nations – and especially not while they are on a foreign tour. Today, Trump has doubled down on his attack on the windfarms he says are spoiling the view from his golf courses in Ayrshire and Aberdeenshire. Posting on his Truth Social account he asserted that UK government ministers 'have essentially told drillers and oil companies that 'we don't want you'. Incentivise the drillers FAST. A VAST FORTUNE TO BE MADE for the UK, and far lower energy prices for the people.' We know how Ed Miliband will want to respond to that, assuming he has not been locked away on Starmer's orders for fear of spoiling the PM's friendship with the President. He will put on his bewildered air and tell us that wind and solar power are so much cheaper than oil and gas, and that what Trump is proposing would put us in the hands of 'fossil fuel dictators' who apparently have to power to set energy prices in the UK. The facts, though, are firmly on Trump's side in this case. If Britain's net-zero policy is delivering us such cheap energy how come we have some of the highest electricity and gas prices in the world? According to the government's own data on energy prices, UK domestic consumers paid an average of 36.4 pence for their electricity and 10.2 pence for their gas in 2023. US consumers paid 12.9 pence and 4.0 pence respectively. And no, the UK's high prices cannot be blamed on our reliance on gas. In the UK last year 29.2 per cent of electricity was generated by gas and 30 per cent from wind. In the US the corresponding figures were 42.5 per cent and 10.3 per cent. Nor is it true that the North Sea is in such sharp decline that Britain isn't missing much by refusing new licences and taxing the remaining industry to extinction (with a windfall tax which imposes a levy of 78 per cent on profits). According to the North Sea Transition Authority the combined 'provable and probable' reserves of oil and gas in the North Sea still amount to the equivalent of 3.3 billion barrels of oil. Offshore Energies UK – which represents the industry – puts it at 7.5 billion barrels. To put that into context, over 40 billion barrels equivalent of oil and gas have been extracted from the North Sea since the 1960s. Unlike the US, long-term self-sufficiency in oil and gas is no longer possible for the UK – at least not from the North Sea, although some estimates for shale gas suggest that fracking could produce up to 47 years' worth of supplies at the current rate of consumption. However, there are still useful quantities of oil and gas beneath the North Sea which would be exploited if only the government would allow it. Moreover, no one really knows how much is down there unless you look for it – but who is going to spend money prospecting for new reserves in the current climate? As for Trump's point about greater North Sea production lowering energy prices, it is hard to argue with it. Britain's eager adoption of renewables has not lowered prices, however much Miliband may promise us savings of £300 a year. On the contrary, we seem to be paying through the nose for our electricity and gas – around three times as much for our electricity and two and a half times as much for our gas compared to consumers in the much more fossil fuel-reliant US.
Telegraph
10 hours ago
- Business
- Telegraph
Trump attacks Starmer for destroying North Sea ‘treasure chest'
Donald Trump has launched a fresh attack on Sir Keir Starmer's North Sea shutdown as he said Britain was wasting a 'treasure chest' of oil and gas. The US president accused the Labour Government of driving away energy companies with a barrage of high taxes, which is piling pressure on households in the form of inflated energy costs. Writing on Truth Social on Tuesday morning, Mr Trump said: His criticism comes just a day after Mr Trump held an hour-long press conference with Sir Keir at his Turnberry golf resort in Scotland. During the meeting, he told the Prime Minister to cut taxes and stamp out illegal immigration if he is to beat Nigel Farage at the next election. It comes after energy companies in the North Sea have been hampered by the Government's decision to increase the oil and gas windfall tax from 75pc to 78pc last year, while also extending the levy for an extra year to 2030. This has been compounded by Ed Miliband's decision to ban all new drilling in the North Sea, as the Energy Secretary seeks to prioritise renewables to help Britain achieve net zero. It is not the first time that Mr Trump has urged the UK to drill more oil. Earlier this month, he called on Sir Keir to 'get rid of the windmills' in Scotland and focus on extracting more from the North Sea instead. David Whitehouse, the chief executive of the Offshore Energies UK lobby group, said in a letter to the Prime Minister last week that the industry was 'asking for a pragmatic conversation about the future of the North Sea which recognises and prioritises home-grown energy'. 'The outcomes of consultations on licensing, future taxes and the wider North Sea are of national importance,' Mr Whitehouse added.
Business News Wales
11-07-2025
- Business
- Business News Wales
Offshore Energies UK Urges More Action to Reach Government Clean Power 2030 Target
Offshore Energies UK (OEUK) has proposed key reforms to accelerate offshore wind generation following the UK Government's publication of its Review of Electricity Market Arrangements (REMA). OEUK says the decision to take a national approach to pricing will encourage more wind energy investment to help the Government hit its Clean Power 2030 targets and boost growth in the critical offshore energy supply chain. The National Energy System Operator has given 5,000 energy projects in the queue for grid connections until 29th July to submit evidence for preferential treatment. The move is intended to prioritise 'shovel-ready' projects and scrap the first-come, first-served approach, which has allowed speculative schemes to delay viable clean energy developments. This proposal must be matched by reforms to the Contacts for Difference (CfD) scheme and planning system to ensure the next allocation round – AR7 – delivers the scale and pace needed. OEUK's analysis shows that to meet the CP30 goal of 95% clean power by 2030, the UK must deliver half of this target from offshore wind. This means at least 43 gigawatts of offshore wind capacity must be installed by 2030, but current projections fall short at just 35GW. The next three CfD rounds must therefore secure an additional 20GW- equivalent to powering around 15 million homes. Only two offshore wind generation projects – GreenVolt in Scotland and East Anglia Two – have been supported by the Government's CfD scheme since 2022. A clear regulatory framework that secures investment and maintains the UK's position as a global leader in offshore wind is now imperative, says OEUK. It added that offshore wind is one of the UK's greatest energy success stories – generating low carbon electricity at scale, creating jobs, and revitalising coastal communities. Fixed-bottom turbines, with so-called monopiles attached to the seabed in shallower waters, have driven the UK's rapid growth of wind energy generation to date but floating wind turbines using newer technologies, can be anchored in deeper waters with stronger wind resources, opening new areas for development. The also have fewer environmental constraints than fixed-bottom projects and can progress more smoothly through the consenting process, said OEUK. Speed and clarity to reform grid access and a more transparent approach with equal treatment for fixed and floating wind farms would give developers and the supply chain greater confidence to invest, it added. OEUK's key recommendations for AR7 and beyond: Support for offshore wind: Provide assurance that sufficient funding is available for both fixed and commercial floating wind projects over the next three years, including projects to decarbonise offshore oil and gas operations, strengthen the UK supply chain, and create export opportunities. Grid and consent reform: Improved risk sharing between developers and grid network operators plus increased administrative capacity and streamlined planning to reduce delays to grid connection. Compensation should be offered for unexpected hold ups. Eligibility and investment: Reform eligibility criteria to allow both fixed and floating wind projects that have not received full consent to bid in the auction, extend CfD contracts from 15 to 20 years and introduce a well-balance cap and floor to transmission charges to improve investor confidence, lower subsidies and reduce costs to consumers. Introduce a well-balanced cap and floor to transmission charges. OEUK's Wind Energy Manager, Thibaut Cheret, said: 'AR7 must be the turning point in making UK wind ambitions a reality. That means enabling floating wind to compete on equal footing, unlocking grid access, and giving developers the confidence to invest at scale. 'We're calling for clear eligibility rules that allow well-progressed but unconsented projects to bid, longer CfD terms to reduce costs to consumers, and a firm commitment to grid and consenting reform – including compensation for delays. These are the changes our members need to deliver the next 20GW. 'At the same time, we are working with our members to reduce project risk and borrowing costs as well as improving contractual relationships and promoting standardisation of modular wind turbine components to make them cheaper and faster to install. 'There is only one energy supply chain for offshore wind and oil and gas – and it cannot be allowed to decline. With the right reforms and a pragmatic energy strategy which supports homegrown oil and gas alongside the acceleration of UK renewables, the North Sea can remain a global energy powerhouse, supporting economic growth, jobs, and our climate goals.' ScotWind: OEUK supports the ambition of the ScotWind leasing round and is calling for clarity on delivery timelines, grid access, and supply chain investment to ensure projects can rapidly move forward. OEUK supports the ambition of the ScotWind leasing round and is calling for clarity on delivery timelines, grid access, and supply chain investment to ensure projects can rapidly move forward. INTOG: OEUK backs INTOG schemes using wind energy to decarbonise offshore oil and gas production. We are urging government and regulators to ensure these projects are prioritised for grid access and CfD eligibility, and that planning processes reflect their dual role in emissions reduction and clean power generation. OEUK backs INTOG schemes using wind energy to decarbonise offshore oil and gas production. We are urging government and regulators to ensure these projects are prioritised for grid access and CfD eligibility, and that planning processes reflect their dual role in emissions reduction and clean power generation. Celtic Sea Round 5 of Celtic Sea wind auctions held last month aims to unlock the potential for floating offshore wind off the coasts of South Wales and Southwest England. The Crown Estate has selected Equinor and Gwynt Glas to develop two 1.5GW floating wind farms. The leases come with grid connections already approved, but only two out of three leases on offer have been taken up. TNUoS: Transmission Network Use of System Charges. Transmission has a cost which is paid by the generator and the user which appears in electricity bills. This cost is expected to increase dramatically in future years as more energy is brought from Scotland to England. The connection cost for the generator rises for remote areas but in heavily populated areas generators are paid to connect. The price difference must be adjusted with a proposed cap and floor system that would introduce an upper maximum cost to Scottish projects. Transmission Network Use of System Charges. Transmission has a cost which is paid by the generator and the user which appears in electricity bills. This cost is expected to increase dramatically in future years as more energy is brought from Scotland to England. The connection cost for the generator rises for remote areas but in heavily populated areas generators are paid to connect. The price difference must be adjusted with a proposed cap and floor system that would introduce an upper maximum cost to Scottish projects. Review of electricity market arrangements (REMA): The government is still to announce the full outcome of its REMA consultation beyond the already published decision on zonal pricing. OEUK is calling for introduction of 'deemed contracts for difference' (based on potential, not actual output). This would mean wind energy producers being paid according to their potential capacity in a system that would give producers the opportunity to benefit from high global wind energy prices when they are available and keep a proportion of the additional profits
Scotsman
29-06-2025
- Politics
- Scotsman
North Sea boss warns 'polarised' oil and gas debate putting jobs at risk and makes Rosebank prediction
Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The head of the organisation that represents the North Sea energy industry has warned the 'polarised debate' over the future of oil and gas is risking efforts to tackle the climate crisis and putting jobs on the line. David Whitehouse, the chief executive of Offshore Energies UK (OEUK), told The Scotsman that he and his colleagues in North Sea industries 'care as much about dealing with climate change as anybody'. The assertion came as he revealed some optimism about a 'pathway' emerging for the controversial Rosebank oil field and Jackdaw gas field developments to be approved and drilling to begin. Advertisement Hide Ad Advertisement Hide Ad Campaigners take part in a Stop Rosebank emergency protest outside the UK government building in Edinburgh. PIC: Jane Barlow/PA Wire Speaking at the OEUK conference in Aberdeen, Mr Whitehouse, a former production engineer for Shell, is a prime example of fossil fuels transitioning to renewable energy - as he is studying for a masters in renewable energy. With the debate around the role oil and gas will play in the energy transition remaining as toxic as carbon emissions, Mr Whitehouse has insisted the heat is coming from extremists on both sides of the argument - with the majority wanting a measured approach to net zero that will boost the economy. READ MORE: Rosebank and other North Sea oil and gas fields could be given green light under new guidelines The UK government and experts have stressed oil and gas will be needed until net zero is reached. Advertisement Hide Ad Advertisement Hide Ad Time for majority to 'speak up' on industry support Asked about the polarised debate, Mr Whitehouse said it was "simply not the case' that 'it's one versus the other, renewables versus oil and gas'. He added: 'I do think a polarised debate is what will stop us being truly successful dealing with climate change and dealing with it in a way that supports jobs and value in our economy. 'I think removing the polarisation from the discussion is really important.' Advertisement Hide Ad Advertisement Hide Ad Mr Whitehouse warned 'sometimes it feels like we're having a polarised debate', but the majority want to see climate change tackled 'in a way that supports existing businesses and industries' and 'see that role for oil and gas - domestic, home-grown oil and gas supporting communities around the country'. David Whitehouse, chief executive of OEUK | Michal Wachucik He said: 'So what you actually find is this isn't a polarised debate within the public - it's just at the extremes. Those loud voices on the extremes are what we are hearing. 'Now more so than ever, that 70 per cent who sit in the middle who want to deal with this in a pragmatic way, who recognise we need it all. Now is the time for us to speak up.' Mr Whitehouse stressed the industry was facing 'an uncertain time'. Advertisement Hide Ad Advertisement Hide Ad READ MORE: GB Energy to take Scandinavian inspiration to become power company amid renewable slowdown alarm He said: 'We see the announcement of job losses at Harbour Energy. We are concerned that we are seeing record-low levels of rig activity. That has real-world consequences.' Concern over renewables slowdown The UK and Scottish governments have insisted the renewables boom will be ramped up at such a pace that it will keep investment flowing into offshore industries. But Mr Whitehouse has warned the pace of both the decline of the oil and gas sector and the expected expansion of renewable energy were concerning. He said: 'We have seen policy decisions over the last [few] years that I think have accelerated the decline in oil and gas. It does not have to be that way. We can reverse that and produce more of the oil and gas that the UK will need. Advertisement Hide Ad Advertisement Hide Ad 'I think there's been real momentum behind the build out of renewables, which is something that we welcome. But there are some issues to be dealt with - in terms of planning and consent, access to grid and financing those projects. 'There is a concern we are seeing a quicker decline of one significant industry, and I think we can reverse that. And we need to accelerate the build out of renewables.' The UK Labour government has vowed to ban new oil and gas licences and is consulting on ending a long-held policy for Britain to seek 'maximum economic recovery' - essentially drain all of the oil and gas from the North Sea. Advertisement Hide Ad Advertisement Hide Ad UK Energy Security and Net Zero Secretary Ed Miliband | PA Mr Whitehouse said: 'The Climate Change Committee said that on our journey to net zero, we are going to require something like 15 billion barrels of oil and gas. We're on track to produce about a third of that. 'With supportive policy, I think we can produce at least half and that creates real value in our economy and supports our jobs.' He added: 'What we really need, also, is there are opportunities around our existing hubs, around those assets like mini towns in the middle of the North Sea. We need the opportunity to bring in some of those other opportunities in those hubs to extend their life.' Advertisement Hide Ad Advertisement Hide Ad Lifeline for Rosebank The Rosebank and Jackdaw projects have been instructed to reapply for environmental consent after the Supreme Court ruled their permission was unlawful and will have to set out the environmental impact of burning the oil and gas contained in the developments. A map showing the location of the Rosebank and Jackdaw oil fields | Kimberley Mogg/NationalWorld Updated guidance published by the UK government last week, suggested environmental consent could be granted to the two projects and an estimated 13 others, if the economic benefits can be proven to outweigh the climate harm. Mr Whitehouse said the new guidance 'provides a pathway to the projects'. He said: 'Now we've got some critical decisions that lie ahead of us and we just need to get these right. Advertisement Hide Ad Advertisement Hide Ad 'I wouldn't say this is the last chance, but I think it is critical that we do get this right. We are seeing an accelerated decline in our oil and gas production in a world where I think we need that. 'We need to be really clear. This is not a debate about oil and gas versus renewables. It's not a debate actually about dealing with climate change versus economic growth. I think if we get this right, we can deliver both. But it is an argument about whether we support our home-grown industries over imports.
Business News Wales
24-06-2025
- Business
- Business News Wales
Homegrown Energy 'Must Power the UK's Modern Industrial Strategy'
Trade body Offshore Energies UK has responded to the publication of the UK Government's Industrial Strategy, which sets out a ten-year plan for Britain's industrial sectors. The strategy, which includes a Clean Energy Industries Sector Plan, focuses on eight priority sectors where the UK is already strong and there is potential for faster growth. OEUK says the new strategy is welcome but must harness the UK's whole energy mix, from oil and gas to wind, hydrogen and carbon capture technology and their interlinked supply chains as a secure and affordable bedrock for long-term industrial success. Alongside the Industrial Strategy the UK Government has also published 10-year plan for renewable energy projects to attract investment of £30 billion a year. It has also announced a further £700 million in energy supply chains, taking the total funding for the Great British Energy Supply Chain fund to £1 billion. OEUK's CEO David Whitehouse said: 'Government is right to recognise the role of secure and affordable energy at the heart of industrial strategy – it must also be clear in its backing for the sectors that currently deliver it, including oil and gas alongside renewables. 'Britain's future doesn't start from a blank page – we should build on the shoulders of our world class industries. That means recognising the critical role of today's industries on that path. 'Our sector has a vision of a modern industrial Britain, powered by secure, affordable, homegrown energy. A vision that sees the trend of deindustrialisation throughout the UK reversed by the transformation of our energy intensive sectors. The government's strategy is a positive step – it will come to life through true partnership with our industries and people. 'The UK's offshore energy sector and its closely interlinked supply chains offer opportunities for industrial growth and leadership. Our highly skilled people are working on projects right across this mix and can kickstart economic growth. To build lasting success, it's critical this new strategy and its supporting funds are inclusive of firms across the whole spectrum of offshore energy.'
