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UK issues offshore drilling licences | UK issues offshore drilling licences |
(40 minutes later) | |
The UK government has awarded 46 new exploratory drilling licenses to firms, including Shell and Centrica, looking for oil and gas. | The UK government has awarded 46 new exploratory drilling licenses to firms, including Shell and Centrica, looking for oil and gas. |
The awards were initially held back due to environmental concerns. | The awards were initially held back due to environmental concerns. |
However the government says it is now confident exploring in the regions, including the English Channel, North Sea and West of Shetland, is safe. | However the government says it is now confident exploring in the regions, including the English Channel, North Sea and West of Shetland, is safe. |
Environmental groups have criticised the decision saying the drilling may put marine ecosystems at risk. | Environmental groups have criticised the decision saying the drilling may put marine ecosystems at risk. |
"There is insufficient data with regards to the complexity of the marine environment in these areas," said Adam Ma'anit from environmental pressure group Platform. | "There is insufficient data with regards to the complexity of the marine environment in these areas," said Adam Ma'anit from environmental pressure group Platform. |
"It is highly irresponsible for [the Department of Energy and Climate Change] to sign off on any concomitant oil and gas expansion in the region." | "It is highly irresponsible for [the Department of Energy and Climate Change] to sign off on any concomitant oil and gas expansion in the region." |
However the government says safeguards have been put in place. | However the government says safeguards have been put in place. |
"Oil and gas remains crucial to the UK economy - contributing around 2% to the country's GDP," said energy minister Charles Hendry. | "Oil and gas remains crucial to the UK economy - contributing around 2% to the country's GDP," said energy minister Charles Hendry. |
"These further licenses have been subject to rigorous examination, and we are now satisfied that initial exploration can go ahead." | "These further licenses have been subject to rigorous examination, and we are now satisfied that initial exploration can go ahead." |
The licenses are in the West of Shetland, North Sea Central area, the North Sea Southern area, the English Channel, the North Channel and Morecambe Bay. | The licenses are in the West of Shetland, North Sea Central area, the North Sea Southern area, the English Channel, the North Channel and Morecambe Bay. |
However the licensing round, launched in 2010, excluded possible sites in the Moray Firth and in Cardigan Bay, in order to protect marine wildlife, and in the south-west approaches to the English Channel due to a lack of data. | |
Shell has been offered 6 exploration licenses, alongside their partner in the project, Exxon-owned Esso. | Shell has been offered 6 exploration licenses, alongside their partner in the project, Exxon-owned Esso. |
GDF Suez, Centrica and RWE are amongst the other beneficiaries, who also include a range of smaller exploration companies. | GDF Suez, Centrica and RWE are amongst the other beneficiaries, who also include a range of smaller exploration companies. |
It is not yet known how much oil and gas will be found in the region, but analysts expect the gas reserves may be larger than oil. | It is not yet known how much oil and gas will be found in the region, but analysts expect the gas reserves may be larger than oil. |
In the summer, BP announced that it and its partners would invest £3bn in redeveloping two oil fields off the Shetland Islands. | In the summer, BP announced that it and its partners would invest £3bn in redeveloping two oil fields off the Shetland Islands. |