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Royal Dutch Shell He said on Thursday that the government has decided not to invest in a British oil development off the coast of Scotland, which has become a test of their environmental identity.
area known as Cambodiais in deep waters northwest of the Shetland Islands. It is seen as a harbinger for Britain’s declining but still great future. North Sea oil industry.
The British government is considering whether to approve the project, which environmental groups and some politicians say should be rejected as it will produce carbon dioxide emissions responsible for climate change.
Shell, which owns 30 percent of Cambo, said it “concludes that the economic situation is currently not strong enough to invest in this project”.
The company also said there was “potential for delay”, citing the possibility that the drilling could attract protests from environmental groups and possibly legal action trying to stop it. Shell recently said it plans to: move headquarters from the Netherlands to England.
Shell’s decision to refuse to invest in developing Cambo was a serious blow to the project. Siccar Point Energy, a private equity-backed firm that is the main owner and developer of Cambo, said that although it was “disappointed” by Shell’s decision, it was “confident” of the project’s qualities, saying it would create 1,000 jobs.
Siccar Point said it plans to invest $2.6 billion in Cambo and has already spent $190 million in the four years since it acquired rights to the site discovered in 2002.
The oil industry argues that as long as Britain consumes more oil and gas than it produces, it is preferable for these fuels to come from the North Sea, where emissions regulations can be made, rather than from places with potentially less control.
Environmental group Greenpeace UK said allowing Cambo to continue “would be disastrous for our climate and leave the UK consumer vulnerable to volatile fossil fuel markets”.
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