Is Energy Self-sufficiency for the UK important?
At the time of writing, granting licences to exploit oil and gas reserves under the North Sea is heralded as a worthwhile solution to the UK’s lack of energy security on one side but as helping to further to an environmental catastrophe on the other. Both views have merit, and we will, as usual, probably end up with some form of compromise.
We must be mindful that there will likely be an election in 2024. Therefore, some degree of political manoeuvring is inevitable. The provision of licences has been linked with CO2 extraction and storage facilities. A significant argument against the greater extraction of fossil fuels is the inevitable creation of greenhouse gasses which are contributing factors to global warming, the effects of which are all over the news at the moment.
The UK wants to be less reliant on imported gas and oil. Where fossil fuels come from has little impact on emissions. But even if consumption remains the same, how it is refined will have an effect on emissions and is a financial consideration. Granting a licence is one thing. Putting the extraction equipment in place and the safe withdrawal of oil or gas will cost a great deal of money. I imagine that the government will rely on private funding.
Energy provision is the issue I want to raise. Should we invest in companies that extract fossil fuels, those that clean up the atmosphere with CO2 capture or any of the supporting industries and technologies in this far-reaching problem?
Did you know your investment portfolio can be shaped to engage with or exclude some industries or companies? An independent financial adviser will have access to tools that explore what companies do – which often differ sfrom what they say they do.
Eamonn Dorling Dip PFS
Senior Independent Financial Adviser
Brooks Wealth Management
Tel: 01733 314553 or 07767 795816
Email: Eamonn@brookswealth.co.uk
Brooks Wealth Management is a trading style of Ampris Limited is an appointed representative of Wealthline Limited, registered in England 08761632 (Registered office: 34 Thorpe Wood, Peterborough PE3 6SR) Wealthline Limited is authorised and regulated by the Financial Conduct Authority 684319