London --24Jun2010/804 am EDT/1204 GMT
UK energy minister Chris Huhne said Thursday he is confident that
country's regulatory regime is robust enough to deal with the risks of
deepwater drilling following BP's massive blowout in the Gulf of Mexico.
"I am confident that the UK's regulatory regime is in good shape to
manage the risks of deep-water drilling," Huhne told an energy conference in
London.
Last week, Huhne said the UK has no plans to halt deepwater exploratory
drilling off the west coast of Shetland as a result of BP's oil spill in the
Gulf.
At the time, Huhne said he was satisfied that the UK government's recent
decision to double its safety and environmental checks on offshore drilling
rigs was sufficient to ensure compliance by operators.
Although the UK's offshore producing province is much shallower than the
deepwater Gulf of Mexico, the west of Shetlands area covers waters up to 3,000
feet deep.
Speaking Thursday, Huhne conceded, however, that BP's Macondo blowout had
given the UK "pause for thought" particularly over the start of exploration in
deeper UK waters west of Shetland.
Part of a longer term solution to the risks of drilling for ever-more
difficult to find conventional oil and gas is a move away from hydrocarbons as
the main energy source, Huhne said.
"We therefore need to take action on two fronts: to stimulate the
expansion of low-carbon technologies, particularly in power generation, and
improve the energy efficiency of our economy," Huhne told the conference.
The UK government in January said it would extend tax breaks to the area
west of Shetland, which would lower the cost of tapping the remote, deepwater
gas fields there. The area to the west of the Shetland Islands is still
largely underdeveloped and could contain up to 20% of the UK's remaining gas
reserves, according to the government.
Huhne has said that while a recent review found that the UK's existing
offshore drilling procedures were already "fit for purpose," he wanted to
strengthen the regime further in light of the Gulf spill.
The UK significantly tightened its offshore safety procedures and their
regulation in the aftermath of the 1988 Pipe Alpha disaster which killed 167
men.
UK energy minister Chris Huhne said Thursday he is confident that
country's regulatory regime is robust enough to deal with the risks of
deepwater drilling following BP's massive blowout in the Gulf of Mexico.
"I am confident that the UK's regulatory regime is in good shape to
manage the risks of deep-water drilling," Huhne told an energy conference in
London.
Last week, Huhne said the UK has no plans to halt deepwater exploratory
drilling off the west coast of Shetland as a result of BP's oil spill in the
Gulf.
At the time, Huhne said he was satisfied that the UK government's recent
decision to double its safety and environmental checks on offshore drilling
rigs was sufficient to ensure compliance by operators.
Although the UK's offshore producing province is much shallower than the
deepwater Gulf of Mexico, the west of Shetlands area covers waters up to 3,000
feet deep.
Speaking Thursday, Huhne conceded, however, that BP's Macondo blowout had
given the UK "pause for thought" particularly over the start of exploration in
deeper UK waters west of Shetland.
Part of a longer term solution to the risks of drilling for ever-more
difficult to find conventional oil and gas is a move away from hydrocarbons as
the main energy source, Huhne said.
"We therefore need to take action on two fronts: to stimulate the
expansion of low-carbon technologies, particularly in power generation, and
improve the energy efficiency of our economy," Huhne told the conference.
The UK government in January said it would extend tax breaks to the area
west of Shetland, which would lower the cost of tapping the remote, deepwater
gas fields there. The area to the west of the Shetland Islands is still
largely underdeveloped and could contain up to 20% of the UK's remaining gas
reserves, according to the government.
Huhne has said that while a recent review found that the UK's existing
offshore drilling procedures were already "fit for purpose," he wanted to
strengthen the regime further in light of the Gulf spill.
The UK significantly tightened its offshore safety procedures and their
regulation in the aftermath of the 1988 Pipe Alpha disaster which killed 167
men.
