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 ‘Cambo has to go forward’: Business debates as Shell reconsiders oilfield exit
February 25, 2023

‘Cambo has to go forward’: Business debates as Shell reconsiders oilfield exit

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Business leaders have been debating as information emerges that Shell is reconsidering its exit of the Cambo oilfield.

It’s understood that the oil big is reviewing the choice it made in December, when Shell mentioned it wouldn’t take Cambo to funding because of the challenge’s economics.

Since then, the value of oil has surged from $70 to past $110, and further authorities strain is being utilized for the UK to scale back reliance on Russia for power provide. Shell, in the meantime, mentioned final week it’s “mapping out subsequent steps” on the challenge.

Shell, which brings monetary heft to the challenge, nonetheless holds a 30% stake, regardless of the choice in December.

In accounts printed final month, Cambo operator Siccar Level Power mentioned Shell has “clarified that they want to stay on the Cambo licence”.

The licence for the sphere, West of Shetland, expires on the finish of the month, and it’s understood that Siccar Level Power has utilized to the OGA for an extension.

Talking to BBC Radio Scotland this morning, Jeanette Forbes, CEO of engineering and IT providers agency PCL Group in Aberdeen, argued the case for the challenge.

She mentioned: “Cambo has to go forward and it’s made it much more prevalent now. If you have a look at the state of affairs that we’re in with petrol pump costs, power costs rising. We’re depending on different international locations for our oil and gasoline. We have to grow to be much less dependent so we are able to really stand on our personal two ft.”

Ms Forbes later added that funding in these fields, like Shell with Cambo, will assist oil and gasoline fund the transition to renewables.

“Now we have to develop these fields with a view to pay for this transition. The longer term is determined by that and that’s the explanation why we have to do it”, she mentioned.

“Individuals who work within the trade don’t need local weather change, however we realise there’s received to be a journey.”


Nevertheless one caller based mostly within the Highlands described Ms Forbes as an oil and gasoline “apologist” describing the thought of progressing Cambo as “bare capitalism”.

He argued the case as an alternative for enhancing manufacturing from present fields and rising renewables funding.

“We should always begin with what we’ve already received. And the journey doesn’t begin with new fields, the journey begins with a significant transition and funding into renewables.”

Professor Tavis Potts, of Aberdeen College’s Centre for Power Transition, mentioned, as a sustainability scientist “it’s a no to Cambo for me”, however it may go forward with sure situations hooked up.

“If Cambo could possibly be a take a look at case for 100% decarbonised manufacturing of the useful resource, that may be one. The opposite take a look at is the massive debate we’re having concerning the local weather compatibility checkpoint.

“If Cambo can cross these stringent checks and be 100% decarboninised, then sure its gasoline could also be within the system as we transition away to be a way more renewable centered power system within the UK and the world.”

Finally, although, new tasks are topic to the situations of the worldwide gasoline market, with marcoeconomic forces taking part in havoc with costs, impacting payments for households.

He argued {that a} pure give attention to renewables is a greater choice.

“I feel we are able to do it sooner and cheaper with renewables and this consists of renewables warmth, which may handle gasoline poverty faster in Scotland as a result of, underneath present gasoline market situations, the costs are insance. We’re all affected by this.

“It’s not going to go away, that’s going to function within the gasoline market regardless of how a lot we produce of a declining useful resource in Scotland.”

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