Royal Dutch Shell has pulled out of a controversial oil project near the Scottish Shetland Islands, saying the project no longer made economic sense for the company.
The company said it has abandoned plans to develop the North Sea Campo oil field, which has become a flash point for climate activists seeking to halt development of new oil and gas resources in the UK.
The company said in a statement after conducting a “comprehensive analysis” of the Campo Shell field, that the economic rationale for investing in this project is not strong enough at the present time, and there is a possibility of delay.
Shell had 30 per cent. In the Campo project, which is opposed by environmental groups who say the UK should stop developing new deposits of oil and gas as part of its efforts to combat global warming.
This is a small step in the right direction in the fight against fossil fuels. Scottish ecologist and activist Mara said the Cambo is completely unnecessary and unacceptable that the government is still considering letting it continue.
– How can Great Britain host COP26 and claim to be an environmental leader while supporting projects like this? We know from the IPCC report that mining must simply stop. The researcher added that it is a positive step that Shell has retracted, and it shows the strength of public pressure and popular activity.
There are still plans for Campo going forward
Siccar Point, the private equity firm that owns the remaining 70% of the field, confirmed in a separate statement that “Shell has made its decision not to invest at this stage.”
The Campo project off the Shetland Islands has been at the center of a political debate over whether the UK should develop new fossil fuel resources as it aims to sharply reduce greenhouse gas emissions in the coming decades.
“Cambo remains critical to energy security and the UK economy,” Siccar Point CEO Jonathan Roger said in a statement.
Roger added: “While we are disappointed by the change in Shell’s position… we will continue to work with the UK government and other stakeholders on the development of Campo in the future.”
Roger says developing a field 125 kilometers west of the Shetland Islands would create 1,000 jobs and facilitate the UK’s transition to a low-carbon economy. But activists and climate scientists are fiercely opposed to development – saying it is in direct conflict with Britain’s climate goals.
Scottish minister Nicola Sturgeon has called on the UK government to scrap the project since August when it issued its first statement on the controversy.
– I ask the British government to agree to a reassessment of licenses already issued and in which field development has not yet begun. This will include the proposed development of Campo, Scottish Minister Nicola Sturgeon said in an initial statement.
Such licenses, some of which were issued many years ago, must be reassessed in light of the gravity of the climate crisis we now face and against a compliance checkpoint fully aligned with our goals and commitments. With these changes – in short the minister.