Britain's New Environmental Guidance Shapes North Sea Future

Britain unveiled crucial environmental guidance on Thursday, poised to significantly impact the development of major North Sea oil and gas fields involving companies like Shell and Equinor. The new guidance stipulates the management of greenhouse gas emissions stemming from oil and gas use, known as downstream emissions, in future governmental extraction approval processes.

Energy department minister Michael Shanks emphasized the importance of this guidance, stating it provides clarity for the North Sea oil and gas industry after last year's Supreme Court ruling. Shanks remarked, "It marks a step forward in ensuring the full implications of oil and gas extraction are considered for potential projects and that we ensure a managed, prosperous, and orderly transition to the North Sea's clean energy future, in line with the science."

The guidance was mandated after a Supreme Court ruling highlighted the necessity of considering climate-warming emissions in oil well approvals, such as the one near Gatwick Airport. A Scottish court in January overturned earlier approvals of Shell's Jackdaw and Equinor's Rosebank projects in the North Sea, calling them unlawful and necessitating a reevaluation.

(With inputs from agencies.)