The Fort Worth Press - UK oil capital tackles the energy transition... up to a point

USD -
AED 3.67298
AFN 67.384996
ALL 90.930513
AMD 386.175669
ANG 1.798582
AOA 911.49704
ARS 987.764796
AUD 1.520288
AWG 1.8
AZN 1.696955
BAM 1.807328
BBD 2.014989
BDT 119.253338
BGN 1.80481
BHD 0.376977
BIF 2900.548912
BMD 1
BND 1.322749
BOB 6.895532
BRL 5.762597
BSD 0.99793
BTN 83.886707
BWP 13.395803
BYN 3.265906
BYR 19600
BZD 2.01157
CAD 1.39255
CDF 2910.000154
CHF 0.86748
CLF 0.034741
CLP 958.597109
CNY 7.1227
CNH 7.119295
COP 4362.01
CRC 512.311083
CUC 1
CUP 26.5
CVE 101.894377
CZK 23.446801
DJF 177.71268
DKK 6.89063
DOP 60.103407
DZD 133.516994
EGP 48.737904
ERN 15
ETB 119.252592
EUR 0.923535
FJD 2.280598
FKP 0.765169
GBP 0.770975
GEL 2.730049
GGP 0.765169
GHS 16.216791
GIP 0.765169
GMD 69.510995
GNF 8607.019424
GTQ 7.714273
GYD 208.788061
HKD 7.771398
HNL 25.174192
HRK 6.88903
HTG 131.517179
HUF 376.946015
IDR 15658.85
ILS 3.712875
IMP 0.765169
INR 84.0917
IQD 1307.316983
IRR 42104.999989
ISK 137.15044
JEP 0.765169
JMD 157.879417
JOD 0.709304
JPY 153.00603
KES 128.999956
KGS 85.801853
KHR 4056.776388
KMF 455.449632
KPW 899.999774
KRW 1379.264996
KWD 0.30657
KYD 0.831685
KZT 489.206572
LAK 21877.743381
LBP 89415.792635
LKR 293.064732
LRD 191.612838
LSL 17.675809
LTL 2.95274
LVL 0.60489
LYD 4.817306
MAD 9.845031
MDL 17.88838
MGA 4613.124116
MKD 56.926531
MMK 3247.960992
MNT 3398.000028
MOP 7.985954
MRU 39.458485
MUR 46.110014
MVR 15.360218
MWK 1730.476006
MXN 20.14388
MYR 4.37901
MZN 63.909949
NAD 17.675809
NGN 1641.570371
NIO 36.723529
NOK 10.958145
NPR 134.220156
NZD 1.670945
OMR 0.384997
PAB 0.997921
PEN 3.756261
PGK 3.99671
PHP 58.228038
PKR 277.18023
PLN 4.009161
PYG 7944.443418
QAR 3.638497
RON 4.59426
RSD 108.085005
RUB 97.018184
RWF 1357.199292
SAR 3.755738
SBD 8.333542
SCR 13.606272
SDG 601.491881
SEK 10.670155
SGD 1.323685
SHP 0.765169
SLE 22.700818
SLL 20969.496802
SOS 570.343435
SRD 34.328008
STD 20697.981008
SVC 8.731772
SYP 2512.530268
SZL 17.680625
THB 33.770499
TJS 10.628101
TMT 3.5
TND 3.091161
TOP 2.342098
TRY 34.291785
TTD 6.763388
TWD 31.984997
TZS 2720.000316
UAH 41.276464
UGX 3657.533614
UYU 41.528439
UZS 12758.859677
VEF 3622552.534434
VES 42.245336
VND 25295
VUV 118.722039
WST 2.801184
XAF 606.158083
XAG 0.029645
XAU 0.000367
XCD 2.70255
XDR 0.750095
XOF 606.166485
XPF 110.206533
YER 250.325026
ZAR 17.68735
ZMK 9001.201112
ZMW 26.570499
ZWL 321.999592
  • CMSC

    -0.0200

    24.55

    -0.08%

  • BCE

    -0.1250

    32.335

    -0.39%

  • CMSD

    0.0150

    24.855

    +0.06%

  • SCS

    0.0550

    12.265

    +0.45%

  • BCC

    4.7950

    136.435

    +3.51%

  • RBGPF

    -2.0000

    61

    -3.28%

  • RIO

    -0.4800

    66.1

    -0.73%

  • RYCEF

    0.0400

    7.25

    +0.55%

  • NGG

    -0.1000

    65.02

    -0.15%

  • JRI

    0.0260

    13.006

    +0.2%

  • GSK

    -1.1450

    37.025

    -3.09%

  • VOD

    0.1200

    9.4

    +1.28%

  • RELX

    -0.8100

    47.1

    -1.72%

  • BP

    0.0800

    29.44

    +0.27%

  • BTI

    -0.0300

    34.43

    -0.09%

  • AZN

    -2.0700

    73.15

    -2.83%

UK oil capital tackles the energy transition... up to a point
UK oil capital tackles the energy transition... up to a point / Photo: © Digital/AFP

UK oil capital tackles the energy transition... up to a point

In Aberdeen, northeast Scotland, offshore wind turbines, the extension to the city's port, and hydrogen buses are clear evidence of the move to green energy.

Text size:

But old habits die hard in the Granite City, which was built on the back of profits of oil and gas piped from the often turbulent waters off its shores.

Mention the energy transition and the response is of a "renewables boom", never a decline in the drilling for hydrocarbons.

That looks likely to be the case for as long as oil and gas remains in the ageing North Sea fields.

Just a few months ago, the UK, which wants to become carbon neutral by 2050, hosted the world at the UN climate change conference COP26 in Glasgow.

Prime Minister Boris Johnson promised to make the country the "Saudi Arabia" of wind power.

The price of energy has since taken off, especially after Russia's invasion of Ukraine, sending bills soaring and leaving many householders struggling to make ends meet.

Disruptions in the delivery of Russian gas to places such as Poland and Bulgaria have also seen the security of energy supplies become a top priority.

Downing Street has published a new strategy which continues to advocate the development of renewable energies.

But it also calls for investment in North Sea oil and gas.

- Security -

Deirdre Michie, chief executive of lobby group Offshore Energies UK, said the move was welcome and a "positive reinforcement" of the role the sector plays in both energy security and the energy transition.

"Even before the energy strategy we absolutely believed that security of energy supply and the energy transition go hand in hand," she told AFP.

John Underhill, a professor in geoscience and energy transition at the University of Aberdeen, is in no doubt there has been a revival of interest in oil and gas -- even in fields considered "sub-commercial".

The Cambo oil field, off Shetland in Scotland's far north, now looks set to be developed, despite fierce opposition from environmentalists which caused Shell to pull out and work to be suspended.

Underhill said people have started to think about where the energy comes from, and about "the role oil and gas plays in the UK and the wider community."

In Aberdeen, local officials are in lockstep with industry.

Jenny Laing, who stepped down as leader of Aberdeen City Council last week, said: "With the local authorities in the last 10 years we've invested heavily in renewable energy sources...

"But we do that in tandem with making sure we're supporting the oil and gas sector. We realise people will be relying on fossil fuel for a number of years to come."

For Laing, and for Michie, geopolitical unpredictability means it's better to rely on oil and gas brought up from beneath British waters than more polluting energy from Russia or elsewhere.

- Expediency -

For Aberdeen and the surrounding area, economic expediency trumps everything.

Most locals either work in the industry or know someone who does.

Britons have abiding memories of the devastating impact of Margaret Thatcher's abrupt closure of coal mines and steel plants in the 1980s.

And while the price of crude has spiralled to more than $100 a barrel since Russia's invasion, Aberdeen and its environs are still recovering from 2014 when prices went the other way, plunging below $50.

Investment in renewables is therefore encouraged but not at the expense of scaring away the oil giants, mainly because they have the capital necessary to finance the energy transition.

"In Aberdeen we've had a very buoyant economy due to the oil and gas sector," said Laing. "We want to make sure that we protect jobs and our local economy."

Many also want the energy transition to be an opportunity to create a more level playing field.

Scott Herrett, who works as a "just transition organiser" at Friends of the Earth Scotland, said: "We have vast wealth which gets generated offshore in the North Sea here in Aberdeen and the northeast of Scotland.

"But we still have mass inequality in the city."

Scientists from the UN Intergovernmental Panel on Climate Change in April warned that humans have only three years to radically transform the world economy, weaning it off fossil fuels to avoid catastrophic warming of the planet.

Aberdeen is trying to diversify, focussing on health, tourism and life sciences -- but it's not ready yet to do so without the money oil brings.

P.Navarro--TFWP