Shell U-turn on Cambo oilfield would threaten green targets, say campaigners

theguardian.com:

Climate activists have reacted with concern to reports that Shell is reconsidering its decision to abandon development of the Cambo oilfield, warning that such a reversal would further threaten emissions reductions targets.

The fossil fuel producer could U-turn on a decision to pull out of the North Sea project because the “economic, political and regulatory environment had changed enormously since the decision was announced just three months ago”, according to sources cited by the BBC.

The Brent crude oil price was below $70 (£53) a barrel in December when Shell announced the long-expected decision on Cambo, but since then prices have surged – reaching $116 on Tuesday morning – in part because of concerns Russian supplies could be disrupted or blocked because of its invasion of Ukraine.

The price rise has prompted analysts across the fossil fuel industry to re-examine the economics of projects. Shell is thought to still have its own analysts assigned to the Cambo project, in which it still owns an interest.

However, it is understood that Shell has not formally reconsidered investment in Cambo at its most senior levels, a step that would almost certainly be required given the project’s political sensitivity.

Governments around the world are scrambling to wean themselves off Russian oil and gas in response to the invasion, and Boris Johnson has said the UK should increase its own domestic fossil fuel output, including in the North Sea.

Mark van Baal, the leader of the campaign group Follow This said a decision to develop Cambo would contravene guidance by the International Energy Agency, a respected global body. Last year the IEA said the exploration and development of new oil and gas must stop immediately if the world is to