North Sea drilling an option to counter Ukraine crisis effect

Boss of Aberdeen Grampian Chamber of Commerce Russell Borthwick has welcomed news that the door has been left open for further North Sea drilling as uncertainty over gas supplies increases due to the Russia-Ukraine crisis.

In its advice to government, the UK’s Climate Change Committee (CCC) said it supports “stringent” tests on North Sea licensing as part of proposed climate compatibility checkpoints, but stopped short of recommending an end to exploration altogether.

The CCC said that it would support a “presumption against exploration”, primarily because of the signal it would send to investors and the world about the UK’s commitment to limiting global warming.

However, in a letter to UK government business secretary Kwasi Kwarteng, it stopped short of recommending such a ban and it acknowledged that the government must factor in “additional important considerations, such as on energy security”.

Oil and gas prices are climbing on fears that the crisis will disrupt supplies across the world.

Experts have already warned UK households could face price surges as high as 35% in their gas bills due to the Russian attack.

Mr Borthwick said; “In economic terms, the unfolding crisis is already having a marked impact upon rising oil and gas prices, while at the same time UK and European stock indices have fallen.

“The UK’s Climate Change Committee has today confirmed that future drilling in the north sea should remain an option, for several ‘important considerations, such as on energy security’.”

Russell Borthwick.