Rishi Sunak has committed to hundreds of North Sea oil and gas projects and approved funding for a long-awaited energy industry scheme in Scotland.
The prime minister confirmed plans to grant fresh oil and gas licences as he visited Aberdeenshire.
The Tory leader also gave his formal backing to a major carbon capture project at St Fergus, near Peterhead, which it’s hoped will create more than 20,000 jobs.
Party insiders claimed today is a chance for Mr Sunak to boost his party’s energy credentials at a time when Labour’s policies have come under scrutiny.
Earlier, Mr Sunak insisted continuing oil and gas exploration is “absolutely the right thing to do”.
‘Better for the environment’
“Even when we reach net zero in 2050 a quarter of our energy needs will still come from oil and gas,” he told BBC Radio Scotland.
“It is actually better for the environment because there is no point in importing stuff from halfway around the world.”
First Minister Humza Yousaf basks the carbon capture plan but attacked the licensing extension.
“For the PM to announce unlimited extraction of oil and gas, in the week the UN has confirmed July is set to be the hottest month in human history, shows the PM is willing to recklessly gamble the future of our planet for cheap political gain,” he stated.
🧵 We've been calling for CCUS to be funded for almost two decades, so this element of UK Govt announcement is welcome.
However, for PM to effectively signal unlimited oil & gas extraction is a further demonstration that they're not serious about tackling the climate emergency.
— Humza Yousaf (@HumzaYousaf) July 31, 2023
Mr Sunak revealed up to £20 billion will be poured into four separate carbon capture schemes across the UK.
Party sources said there was relief that Peterhead’s carbon capture plans have been formally backed after years of frustration.
In 2015, the UK Government ended a £1 billion competition to get potential schemes off the ground, disappointing backers of the project in Peterhead.
The Tories then reversed course in 2020, but SNP Westminster chief Stephen Flynn has regularly criticised the speed of the process.
Scottish Tory leader Douglas Ross contrasted Mr Sunak’s trip to Aberdeenshire with Sir Keir Starmer’s decision to outline his own proposals to shift away from oil and gas in Edinburgh.
Mr Ross said: “His visit is a clear reminder that it’s the Conservatives who are backing Scottish oil and gas.
“Contrast this with Keir Starmer hiding away in Edinburgh.”
Rival parties in Scotland warned the prime minister must ensure carbon capture funding is actually followed through given previous disappointments.
Mr Flynn said: “Any investment is of course welcome.
“However, the UK government has taken Scotland down this path before – and failed to deliver every single time.
“There can be no more delays.”