Shell pulls out of Cambo oil field project

Shell has announced that it is pulling out of the controversial Cambo oil field project. 

The company, which has 30% equity in the development off the west coast of Shetland has concluded that the economic case for investment was ‘not strong enough.’ 

In a statement, Shell said: ‘Before taking investment decisions on any project we conduct assessments to ensure the best returns for the business and our shareholders. 

‘After comprehensive screening of the proposed Cambo development, we have concluded the economic case for investment in this project is not strong enough at this time, as well as having the potential for delays.’ 

Environmental groups and climate campaigners have welcomed this decision. 

Friends of the Earth Scotland’s Climate and Energy Campaigner Caroline Rance said: ‘People power has made the climate-wrecking Cambo development so toxic that even oil giant Shell doesn’t want to be associated with it anymore.

‘Shell could see what way the wind was blowing with the project facing fierce opposition, and costly delays, from the public, climate groups and politicians.

‘This marks the beginning of the end for all new oil and gas projects. Climate science is clear that there can be no new fossil fuels, and now Shell has admitted there’s no economic case in new oil and gas either.

‘Both the UK and Scottish Governments must now officially reject Cambo, say no to any future oil and gas developments in UK waters and get on with planning a fair and fast transition for people working in this industry.’

Ed Miliband, shadow secretary of state for climate change and net-zero, said the move was a ‘significant moment in the fight against the Cambo oil field.’

He said: ‘It makes no environmental sense and now Shell are accepting it doesn’t make economic sense.

‘Ploughing on with business as usual on fossil fuels will kill off our chances of keeping 1.5 degrees alive and carries huge risks for investors as it is simply an unsustainable choice.

‘Shell have woken up to the fact that Cambo is the wrong choice. It’s long past time for the Government to do so.’