AN SNP backbencher has warned the First Minister that her Government may miss out on the financial benefits of transforming to a net zero economy by neglecting “a thriving oil and gas sector”.
Fergus Ewing, a former SNP energy minister, has spoken out in support of the North Sea oil and gas sector, claiming that ramping up domestic fossil fuel production will end a reliance on imported energy, thought to have a greater carbon footprint.
The First Minister insisted that the transition from fossil fuels must be made “as quickly as possible” while she warned that “a significant proportion of what is produced in the North Sea right now is actually exported" - meaning it will do little to help improve energy security for the UK by ramping up production.
Lobbying records show that the company behind the controversial Cambo oil field plans, Siccar Point Energy, lobbied Mr Ewing in December – highlighting “discussion of environmental mitigations and climate change compatibility, the role of the project in supporting the energy transition, the economic impact of the project, and its contribution to UK energy security”.
Since last summer, Mr Ewing has been lobbied by the industry body for oil and gas producers twice and once by Shell.
Speaking at First Minister’s Questions, Mr Ewing said: “Will the First Minister welcome the 11 per cent reduction in emissions from North Sea operations achieved and does she agree that more gas produced here in the UK CS (continental shelf) means less imported LNG, cutting emissions by nearly 300%?
“Should we in Scotland not be in the lead on decarbonising opportunities – offshore wind to power platforms, hydrogen technology and carbon capture and storage, which the climate change panel say is vital to get to net zero?
“Does she recognise, in conclusion, that without a thriving oil and gas sector, Scotland may simply lose these major opportunities to lead on net zero because it is their skills their technical expertise and their operational experience that are essential to deliver them.”
The Climate Change Committee, the statutory advisers for both the Scottish and UK governments has criticised the lack of ambition from the North Sea oil and gas sector in cutting its emissions at a fast enough pace to help Scotland's 2045 and the UK's 2050 net zero pledges.
In response, Ms Sturgeon said she welcomed the efforts being made by the industry to cut pollution.
She added: “Of course, we have to also think about the impact on the environment of the use of oil and gas – that’s an important part of getting to net zero as well.
“I do agree and have made clear my agreement that the skills, the expertise and indeed the infrastructure of the oil and gas sector will be extremely important in making sure that we make that transition to renewable and low carbon sources of energy.
“We need to make that transition as quickly as possible for a variety of reasons and the importance of that has been underlined in recent weeks. But we need to do that fairly and justly as well.”
The FM said that when Mr Ewing was an energy minister, he “played a really important role in helping ensure that the Government is on the right track”.
She added: "Nobody wants to increase dependence on imports of oil and gas but we must, therefore, ensure that we are investing properly in the transition to renewables and that is what this Government is seeking to do.”
Scottish Conservaitve energy, net zero and transport spokesperson, Liam Kerr, pointed to a report by the industry body, Offshore Energies UK, that claimed that “without political backing, the UK could ne wholly dependent on imports of oil and gas within 15 years due to a lack of confidence to invest”.
He added: “Given the Cambo field is priced in to the Climate Change Committee’s net zero projections for decarbonisation, could help reduce the cost of energy bills and create around 4,000 jobs and would significantly help the UK’s energy security, will the First Minister consider giving her political backing to production from Cambo?”
Ms Sturgeon has previously said that Cambo should not go ahead and has called on the UK Government to extend its climate compatibility checkpoint to cover proposals that already have initial licences, such as Cambo.
She said: “I’ve made clear my views on Cambo – I think they are well-known and well-reported. I’m not the decision-maker on Cambo but I have made my views clear on that.
“I think everybody accepts, even colleagues in the UK Government accept the importance of moving away from reliance on fossil fuels as quickly as possible but that we need to do that justly.
“The question is how we best do that. Of course, a significant proportion of what is produced in the North Sea right now is actually exported.”
Ms Sturgeon added: “We need to invest more in renewables and low carbon sources of energy.
“As Fergus Ewing has rightly said, we need to invest in carbon capture and storage. It is, again, regrettable that the UK Government has not prioritised the Scottish cluster, the Acorn project.
“This is inescapable and the war in Ukraine has just reminded us how important it is to transition away from fossil fuels.
“There will be differences of opinion on how best to do that, but it is inescapable that we do that. For this government, the investment in and support of renewables is the crucial part of it.”
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