Energy supplies are becoming threatened and sparse through supply chain weaknesses and acts of war. Because the UK is an island nation it must act more swiftly than others to ensure energy security.
Investment in Both Renewables and Oil & Gas
Clearly the most sustainable way to achieve this is through investment in renewable technologies. But also hydrogen related projects are attracting interest currently. However, dependence on oil and gas is not going to disappear overnight. In fact, a renewed interest in developing the North Sea has become apparent of late. Over the next decade it would be prudent to continue to develop the North Sea. If we do not need the oil and gas then we can always sell it on to the developing world.
The North Sea has to continue to be developed by Britain for new oil and gas resources. New oil and gas is necessary even as the nation deploys significant offshore wind and carbon capture and storage projects. According to Shell’s UK head of upstream:
“The UK will still need its home-produced oil and gas, which would otherwise only be replaced by likely higher-emissions imports,” Simon Roddy said in an interview.
£25 Billion Investment Plan
Over the upcoming ten years, Shell intends to invest up to £25 billion on the UK’s energy infrastructure. Low-carbon products and projects constitute 75% of this. The company is a partner in Scotland’s Acorn carbon-capture and hydrogen project, and won rights to erect offshore floating wind turbines. But it also intends to carry on with the development of North Sea oil and gas, albeit more slowly than in the past.
2022 is showing an increased appetite to invest and secure the UK’s energy future. And hence M&A activity is on the increase with a large number of deals coming to market with strengthening valuations.
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Extracts taken from an article published on Bloomberg UK.