The precedent that could kill UK oil and gas

Approval for Rosebank and Jackdaw did not include an assessment of the effect of combustion emissions on the climate.

That’s what the judge said.

But he didn’t just make this up because he’s a Greenpeace member or something.

No, there was a Supreme Court precedent, set in June last year.

In that ruling, SC judges ruled against a local council that had granted an oil well expansion.

Yes, a single oil well.

But they hadn’t assessed the effect of the eventual burning of the oil from that well on the climate.

All this in all seriousness.

While energy prices skyrocket because the UK has to import more gas and more oil.

The ultimate form of self-hate

Rosebank contains between 300 and 500 million untapped barrels.

Jackdaw contains the equivalent of 200 million barrels of crude in the form of natural gas.

None of that will be reaching any British homes anytime soon, however.

Not until the UK government decides whether the climate can bear an additional burden of combustion.

From just these two fields.

Meanwhile, China is drilling a 50,000-foot oil well.

Because it can.

The green money drain

In Q4 Shell took a hit of almost $1 billion on wind power in the U.S.

In total, its so-called low-carbon business booked losses of half a billion last year.

That was a 166% decline on the previous year.

Over these two years, meanwhile, Shell poured $8 billion into transition tech.

Now, if you were a Shell shareholder, how would all that make you feel?

Not encouraged by the progress and profitability of green energy, that’s for sure.

So Shell is saving face and pivoting.

“The key for us is making sure that we deliver the returns that our shareholders expect of us from that capital,” Sawan said.

That’s all that matters to a public company—keeping its owners happy.

If oil and gas revenues make them happy, then oil and gas it will be.

And if anyone wants to push wind and solar more successfully, they’d have to mandate them.

That’s exactly what Sawan said, only more delicately.

Get over the losses and move on

The Shell CEO criticized “a lot of backsliding” from politicians on green targets.

There’s a good reason for that “backsliding” and it’s called cost.

If there is to be a transition, the “backsliding” must stop, per Sawan.

Not just that but “The more robust the mandates are, the more likely we will be able to invest in growth.”

Yeah, that’s worked so well for EV makers.