Energy behemoth Shell is rethinking its decision to withdraw investment from a big new UK oil field, according to the BBC.
Shell said in December that it was withdrawing from the Cambo oil field, which is 75 miles off the west coast of Shetland, due to the economic case and potential regulatory delays.
The price of crude oil was under $70 per barrel at the time. It has subsequently doubled in price and has remained continuously over $100.
Fears that Russian oil may be ignored or cut off are causing oil prices to fluctuate.
The UK government is ready to accelerate investment in indigenous fossil fuels in order to minimise European reliance on Russian exports.
Shell hasn’t sold its stake in the field yet. According to sources familiar with the situation, while the company’s official position has not altered, it has acknowledged that the economic, political, and regulatory landscape has changed dramatically since the decision was made just three months ago.
Shell resubmitted a proposal to develop the Jackdaw North Sea gas field, which is located off the east coast of Scotland, after it was rejected by environmental authorities in October.
To comply with legal regulations, the business stated it has adjusted the chemical processes involved in the gas extraction.
The UK government stated that investment choices are a business concern for the firms involved, but that it remains committed to the domestic offshore oil and gas sector as the country strives to achieve net zero greenhouse gas emissions.
