According to Insider:
‘Royal Dutch Shell has given the go-ahead for an expansion of the Penguins oil and gas field in the North Sea, its first major new project in the region in six years. The development will include the construction of a floating production, storage and offloading (FPSO) vessel, which is expected to produce up to 45,000 barrels of oil equivalent per day (boepd). Shell said it will generate a profit even with oil prices below $40 per barrel, making it competitive against other offshore basins and most of North America’s shale production.’
It’s interesting that they use the $40pb rate, long surpassed. Brent prices burst through the $70pb figure last week and have been above $60pb for some time. See:
Are they worried they might have to pay taxes if they acknowledge higher prices?
The Scottish Government Energy Minister said:
‘This significant investment by Shell and ExxonMobil is further evidence of rising confidence in the future of the region and it will offer a significant boost to communities across the north-east of Scotland, along with boosting the wider Scottish economy. We have always maintained there are significant opportunities remaining in the North Sea, even in the context of a low carbon transition, and that a strong and vibrant domestic offshore oil and gas industry will play an essential role in the future energy system we set out in our recently published energy strategy.’
Some readers may remember that Shell paid taxes to every other country they worked in but not to the UK, in 2016, so we’ll have to keep an eye on them. See this:
Surely the UK government didn’t let them off just to damage the case for Scottish independence? No, there must have been some good reason we colonials wouldn’t understand. See this for an explanation: