Ithaca Energy has become the latest energy company to advance a significant gas and oil project in the UK North Sea. The growth of the international oil and gas market has been like a surge of energy that has boosted output capacity for a wide range of global energy companies. However, the continuous and stable growth has been dramatically slowed thanks to new regulations regarding proposed projects, as the UK government aims to reduce oil and gas production in favor of incentivising more renewable energy developments.
Several governments are laying down the law in the energy industry
The UK government, along with a litany of other nations, has been actively rolling back permits and shutting down proposals for new gas and oil projects as the world targets net-zero emissions from the international energy industry over the coming years.
This new approach to the energy industry certainly reduces reliance on oil and gas, but there must be a balanced approach to energy projects, as the oil and gas market will continue to play a vital role in delivering sufficient energy supply for the populace. It seems that oil and gas are still relevant in the global energy supply.
Ithaca Energy has now submitted the relevant environmental and development plans to the UK regulator to advance with several energy projects in the UK North Sea. The most promising development, without a doubt, is the Fotla field in the North Sea, which has become home to some of the largest energy companies in the world.
The world is developing new frameworks for energy production to reduce emissions
BP, Shell, and even some lesser-known energy companies now have developments in the North Sea and its litany of fields. Ithaca Energy has submitted the development plan following the latest budget announcement from the UK government, which provides a small opportunity for oil and gas developments in the region around the North Sea.
Transitioning to the renewable energy market is the main goal for the global energy industry
While the UK government recently unveiled its ‘North Sea Future Plan’, which allows for energy projects to be developed only in existing regions and any wells or developments in the immediate area around existing projects, the aim, according to the government, is to allow for limited oil and gas production as it weans off conventional energy generation.
Ithaca has submitted the plans for the Fotla field development, which forms part of the Greater Britannia Area in the UK North Field. The proposed plan calls for a two-well tie-back to the Britannia platform, which notably processes liquid energy resources from the region. Energy companies are attempting to gain a foothold in regions that still promote the use of oil and gas.
The UK’s development strategy does not allow for energy companies to explore new wells and developments in the region, and only allows for developments in existing fields or projects. Ithaca has several developments that play significant roles in energy supply to the region, but expects that the proposal for the Fotla field passes muster, to begin drilling operations in 2027.
Ithaca Energy is aiming to squeeze the last energy resources out of the North Sea
As global upstream production is expected to surge over the coming years, Ithaca will be hoping for a positive result from its proposal, and pave the way for oil and gas production to still play a role in the global energy market while the world develops new frameworks to integrate more renewable energy projects. The approach developed by Ithaca aims to get as much production done in the North Sea region while the government still allows for production, while it develops renewable energy infrastructure over the coming years.
