Shell Dumps Cambo Oil Project Off Shetland Islands, Cites Bad Economics
Shell has pulled out of a controversial new oilfield off the Shetland Islands, plunging the future of oil exploration in the area into doubt. Shell, which was planning to exploit the field along with the private equity-backed fossil fuel explorer Siccar Point, cited a weak economic case as its reason for deciding not to go ahead with the project. “After comprehensive screening of the proposed Cambo development, we have concluded the economic case for investment in this project is not strong enough at this time, as well as having the potential for delays,” Shell said. Climate campaigners said the move by Shell was a “deathblow” for the controversial project, which was fiercely opposed by activists across the UK.
The UK government was facing a legal challenge from Greenpeace over its decision to allow the new drilling to go ahead. After the Cop26 UN climate summit in Glasgow last month, Scotland’s first minister Nicola Sturgeon signalled she did not believe the project should go ahead, and should be subject to a climate assessment.
Green campaigners have argued that the green light for Cambo should not be given, in light of the UK’s legally binding target to reach net zero emissions by 2050. Government approval for exploration at the site, 78 miles (125km) west of the Shetlands, in waters 1,000 metres deep, was first given in 2001. Ministers had announced in March that they would allow oil drillers to keep exploring the North Sea for new reserves, despite the government’s pledge to reduce UK carbon emissions to net zero by 2050, as long as they passed a “climate compatibility” test in addition to the existing environmental checks.
The International Energy Agency, the global energy watchdog, produced a report in May saying no new oil and gas exploration and development should be conducted after this year, if the world is to stay within 1.5C of global heating, the target the UK made the focus of the Cop26 summit.
EDIT
https://www.theguardian.com/environment/2021/dec/02/shell-pulls-out-of-cambo-oilfield-project