EurOil: Wood urges against end to oil exploration

UK oil tycoon Ian Wood has warned that it would be “absolutely crazy” for the UK to call time on oil exploration, adding that such as a policy would be “detrimental, environmentally.”

The UK government faces calls to adopt a tougher stance towards continued oil and gas extraction, with the head of Labour opposition party Sir Keir Starmer recently urging a “hard-edged timetable” to be set for ceasing production. UK authorities have revised oil and gas licensing policy to place a greater emphasis on the environment, but have said exploration will continue for years to come.

Wood, who used to run one of the world’s biggest oil services companies that bears his surname, told the BBC on August 25 that new fields needed to be developed to reduce reliance on oil and gas imports from countries with looser environmental restrictions. Opponents of domestic upstream restrictions often point to the higher emissions from having to transport oil and gas from overseas over distances rather than producing the fuels at home.

Meanwhile, in welcome news for EU gas consumers, Norway has launched production at the third phase of the Troll gas field, with Equinor hailing it as one of its most profitable projects. Equinor estimates Troll Phase 3’s breakeven price at less than $10 per barrel of oil equivalent (boe), with emissions of under 0.1 kg per barrel. The project cost NOK8bn ($924mn) to implement, and will recover 347bn cubic metres of gas during its lifetime.

Lastly, an infrared camera has identified more than 70 methane plumes coming from pipelines, oilfields and storage units in Romania, Bloomberg reported on August 25.

The oil and gas industry has faced heightened scrutiny recently over its emissions of methane (CH4), a far more potential greenhouse gas than CO2. And recent innovations in detection technologies have made it easier to locate plumes. Geoanalytics firm Kayrros has recently exposed large methane plumes in Russia and in Kazakhstan that had not been reported by operators.

Non-profit Clean Air Task Force (CATF) estimates it has found more than 70 leaks at Romanian oil and gas infrastructure using a $118,000 camera.

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