Yesterday's announcement by Sunak was far from destructive for the North Sea oil & gas industry given the generous projects investment tax relief, but it fails, as it turns out, in at least one critical way.
The Chancellor’s Energy Profits Levy, announced yesterday, is a disappointing and worrying development for industry. The shockwaves will undoubtedly be felt in offshore energy jobs and communities for years to come.
The benefit of a circular approach as we address the climate challenge, with more focus on re-use and recycling, has been emphasised for me in recent days.
The energy regulator Ofgem has published a decision document on the Market Stabilisation Charge (MSC) and opened a fresh consultation on changes to the frequency of energy price cap adjustments. These changes, while identified by the regulator as crucial to protect the market, risk having an adverse impact on consumers - something Ofgem concede in their own documentation.
The government is rightly pressing the urgency of the country’s energy security challenge. It is imperative we also use this as an opportunity to make large and purposeful strides towards our net zero obligations. In his recent letter to the oil and gas industry - 'Accelerating investment to protect Britain’s energy security' - Kwasi Kwarteng calls for the industry to “double down on investments in the clean energy transition”. Key to this is the acceleration of our home grown decarbonisation industry.
In the last few months, gas’ role in the energy mix has been put under a microscope.
The oil & gas industry was arguably worst hit by the IR35 changes, due to heavily relying on consultants, particularly lawyers. Understandably, some businesses are still unsure of how to manage IR35’s stipulations so they can access instant legal expertise, and ease pressure on in-house legal teams. But there is a way forward, which can minimise the impact IR35 has on businesses. Using freelance providers can ease a huge admin burden, but it’s important business understand their obligations too.
The feeling of loneliness likely affects us all at some point in time which can have a huge impact both mentally and physically.
It will come as no surprise to readers when I say we are in the midst of a cost-of-living crisis.
Rather than seeking to simplify complex issues and problems by breaking them down into their component parts, systems thinking focuses more on the development of a holistic understanding as well as the relationships and interactions between elements within a system.
Last month the UK Government published its British Energy Security Strategy.
The global response to the tragic invasion of Ukraine has underlined the importance of energy security and the need for responsible, clean and reliable sources of energy for our country: a balanced transition is key as we look to secure a bright future for our industry and its workforce.
Before any discussion of how the invasion of Ukraine by Russia is impacting our sector, we must first acknowledge the devastating effects on the people of Ukraine of the indiscriminate shelling of civilian targets, the war crimes being perpetrated by Russian troops and the massive displacement of the population both within and beyond Ukraine, which is something most of us have never seen in Europe in our lifetimes, as well as the enormous courage and resilience of the Ukrainian nation.
My eldest son is an aerospace engineer and lives and works in Seattle on the US West coast. He’s built a career in an industry which nowadays offers few opportunities in Scotland nor many in other parts of the UK.
A ministerial visit that’s long stuck in my mind was to a city called Khanty-Mansiysk far to the north in Siberia. You haven’t heard of it? Well, join a very large club to which I belonged before going there.
Only six months ago, the spotlight of the world was firmly on COP26 in Glasgow as the defining moment for the world to keep ‘1.5 alive’. For a brief period, the world was united around a common goal to protect the planet from the worst impact of climate change.
The current energy sector is certainly a hazardous one, contributing to much of the CO2 emissions that are affecting the planet. That is why the global energy sector – including industry and mobility using energy – must transition to clean energy in order to keep the planet a liveable place.
Engineering as we know it had its origins in the Age of Enlightenment that dominated the world of ideas in Europe in the 17th and 18th centuries when science played an important role as pragmatism, logic and rational thinking replaced the authority of tradition and religion.
In a recent judicial review decision, two judges in an English court considered an application by Friends of the Earth (FoE) to quash UK Export Finance’s (UKEF) decision to provide export finance to the Mozambique LNG Project.
Lithium-ion batteries are ubiquitous, whether it be in consumer products, electric vehicles (EVs) or commercial and industrial energy storage. Nowhere is this more evident than in EVs, which are making meaningful inroads into the transportation market, with market data company Canalys estimating 6.5 million EVs were sold worldwide in 2021, more than double the prior year.
In February, the Norwegian Ministry of Finance announced a consultation on the proposal that Norway extend its taxing rights. This would include non-resident companies undertaking certain offshore activities in renewable energy.
Globally the energy landscape is changing. It is undergoing significant transition to meet energy demands whilst reducing carbon emissions – a difficult balancing act.
The UK government has shared its long-delayed Energy Security Strategy, and it provides the signal North Sea investors needed. The UK Continental Shelf can once again be an attractive investment destination.
April 7th marks the World Health Organisation’s World Health Day, where this year’s focus is “Our planet, Our health”. It states that “global attention on urgent actions (are) needed to keep humans and the planet health and foster a movement to create societies focused on wellbeing”.
The war in Ukraine has jolted European politicians into finally understanding that overdependence on imported energy can carry extreme risks. What they haven’t understand yet though is that you can’t just turn off one set of taps and turn on another.