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North Sea oil back in court day after Shell beats activists

Published 25/07/2023, 12:01
© Reuters.  North Sea oil back in court day after Shell beats activists

Proactive Investors - Greenpeace will clash with the government in court on Tuesday over the granting of new licences for North Sea oil and gas companies.

Campaigners and the North Sea Transition Authority will argue whether the UK’s latest oil and gas licensing round was illegal during a judicial review in London’s High Court.

The showdown comes a day after Shell PLC (LON:SHEL) saw off climate campaigners attempting to sue over the oil giant’s backtracking on climate commitments in the court.

According to the pair, the government’s opening of the UK’s 33rd licensing round last year was unlawful since downstream emissions from burning the fuel produced from new wells had not been assessed.

“None of the government’s tests look at emissions created from burning fossil fuels,” Greenpeace said in a statement.

“Nor did the government explain how this licensing round could possibly be compatible with the UK's climate objectives”.

Some 115 bids were submitted from 76 different companies for new licences to drill in the North Sea during the round last year, with blocks currently being handed out.

Ministers have repeatedly argued that sourcing fuel from the North Sea will reduce reliance on exports, which can push up prices and emissions if gas is liquified.

However, campaigners disagree, suggesting new wells will only delay the UK’s targeted shift to net zero by 2050 since reliance may not be placed on cleaner renewables.

Read more on Proactive Investors UK

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