UK Government under pressure to reassess greenfield oil and gas

Last week, the Scottish First Minister called on the UK government to “reassess licences already issued, but where field development has not yet commenced”. This implies potential barriers – or even an outright ban – to new oil and gas projects. It follows strong pressure from environmental groups opposing Siccar Point’s Cambo development in the West of Shetland, aiming for sanction later this year. Wood Mackenzie's Accelerated Energy Transition Scenarios examine the pathways to reach net zero, and it's clear governments need to take faster and more radical action on climate change to meet Paris goals. But cutting supply without an equivalent demand reaction is an issue that speaks to the heart of the producing countries' net zero dilemma. It could simply shift emissions to other locations. In this insight, we examine the potential impact on UK oil supply, imports (and associated emissions) and value that could be left in the ground.