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Oil and gas profiteering amid energy crisis highlight broken system, campaigners say

This news post is 12 months old

The calls come as energy bills across the UK are set to rise by more than half.

Environmental campaigners have said that today’s rise in energy bills for UK households whilst oil companies announced billions in profits show that the UK’s oil and gas energy system is “fundamentally broken”.

The UK Government has allowed the energy system to be run in the interests of oil and gas giants and, with millions of people in fuel poverty, it is continually failing to meet the basic needs to have a warm home.

Ofgem announced a 54 per cent increase in the energy price cap, due to rising global gas prices. 

Meanwhile oil giant Shell announced $19.3billion (£14.5bn) in profits for 2021 - including $6.4bn (£4.7bn) in the last three months alone. 

Earlier this week, Exxon said that they had made $23bn (£16.9bn) billion in profit in 2021.

Climate science has demonstrated that there should be no new oil and gas developments anywhere in the world if we are to stay within the agreed limit of 1.5C of dangerous temperature rises

Governments reaffirmed their commitment to this goal at the UN climate conference in Glasgow.

Friends of the Earth Scotland’s just transition campaigner, Ryan Morrison, said: “People will be enraged to watch companies like Shell and Exxon celebrating billions in profit as the energy price rise is expected to push millions more homes into fuel poverty and forcing people to choose between heating and eating.

“The UK’s energy system is fundamentally broken. Today is clear evidence that it doesn't work for people or the planet. Oil company bosses are being allowed to profit from climate breakdown and the gas price crisis on the back of widespread misery for people around the world.

“Instead of allowing these companies to cause social and environmental devastation for their own pocket, we need to overhaul our energy system to end our dependence on oil and gas. It’s time to rapidly scale up investment in renewables and energy efficiency while winding down fossil fuel production. A just transition will not be realised while profit obsessed fossil companies call the shots.”

The concerns come amid concerns about the cost of living for households across Britain. 

On Thursday, following the Ofgem announcement, Chancellor Rishi Sunak announced mitigation measures which were slated by anti-poverty campaigners. 

A number of proposals have been outlined to alleviate the growing financial pressure on families. 

An Oil and Gas Authority spokesman said: "Oil and gas provide around three quarters of total UK energy consumption and all forecasts point to them remaining needed for heat, power and transportation in future. The UK is expected to be a net importer out to 2050. Decreasing our domestic production will only make the UK more reliant on imports, including from countries with less commitment to reduce emissions.

"While the energy transition is happening over time, not overnight, we’re helping industry rapidly progress energy transition projects. Transition means that different energy systems will co-exist alongside each other, including oil and gas."

The UK Government was approached for comment.



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Lok Yue
12 months ago

If we got on with fracking we wouldnt be in thrall to Russia

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Lok Yue
12 months ago

If we got on with fracking we wouldnt be in thrall to Russia