Shell urges UK government to unblock Jackdaw gas field

The UK government is under pressure to lift blocks on oil and gas development to ease energy shortages

Shell bosses are pressuring the UK government to unblock development of the Jackdaw gas field following objections to its environmental impact.

After announcing $9bn first quarter profits on Thursday, the energy giant declined to comment on whether it would return to the Cambo oil field.

It pulled out of the Shetland site as minority investor last year under pressure over climate change.

But after its profit announcement, Shell circled back to new developments.

Finance director Sinead Gorman told journalists the priority in response to Europe's gas shortages would be fields that were close to going onstream.

Shell chief executive Ben van Beurden said winter would be tough without Russian energy supplies

Jackdaw, east of Aberdeen, is part of the Shearwater hub, meaning that much of the infrastructure is already in place. But last year, the UK government declined permission to develop it.

Other near-term projects highlighted by Shell include the Penguins and Pearce fields in the UK North Sea. The new finance director confirmed they had been delayed by late delivery of a floating production vessel from China, due to pandemic disruption.

• Shell reconsiders its exit from Cambo oil field

• New North Sea Shearwater pipeline announced by Shell

• Redevelopment of Penguins oil field to bring new jobs

Chief executive Ben van Beurden warned that Liquid Natural Gas shipments could not make up for the loss of Russian energy, if gas was switched off as a result of sanctions or due to Russian refusal to supply.

He said "It will be a tough winter if we don't have any Russian molecules coming into Europe. That's the only thing I can say with any certainty".

The company repeated that it intended to invest £25bn in UK energy projects during this decade, three-quarters of that in renewable and green energy, such as hydrogen and vehicle charging networks, as well as oil and gas.

And Mr van Beurden urged the UK government to reduce the time it took to develop wind farms - challenging it to cut that in half, from as long as 10 years.