00:00Well, let's get more on this from Professor John Underhill, Director of Energy Transition at Aberdeen University.
00:06Professor Underhill, thanks for joining us.
00:08So, the government's saying it doesn't expect any impact on bills this winter, only a handful of jobs it's estimated
00:15to create.
00:16Do you think this decision can be justified?
00:20Well, having independently examined the data, the evidence, the facts and the figures, I think it can be justified, yes.
00:26Because in an instant, what the government has done is unlocked gas supplies that will provide support for the supply
00:34chain that we need for the renewable future.
00:38It will protect jobs, not in Jackdaw per se, because few new jobs are associated with that project.
00:45It's more about protecting jobs across the sector, because the gas will go through the shear water assets to St.
00:53Fergus,
00:53jobs in Aberdeen, and indirect ones as well, will be supported.
00:57And we should remember, there were 3,500 construction workers employed in the build of the platform itself.
01:04In addition, it will lead to a small but meaningful immediate supply.
01:10It will be on stream in weeks, and it will enhance energy security.
01:14It will ensure new tax revenues will be raised that the Treasury has in its gift to use in every
01:21which way it wishes.
01:22So the new Energy Wealth Fund for Renewable Technologies is one example, but they could also reduce fuel duties or
01:30indeed subsidies on bills.
01:32And in Parliament today, Andy Burnham talked about looking at the standing order for gas bills.
01:37It's better for the balance of payments, because we're raising tax revenues domestically rather than paying for gas supplies that
01:46we would need otherwise.
01:47And importantly, it guarantees lower emissions compared to liquefied natural gas, LNG, we would otherwise need to import,
01:57which comes with higher emissions and is worse for the global climate.
02:01A lot to digest there. Are we talking about big profits and who will make these profits?
02:07So the income, there is something called the Energy Profits Levy, effectively a windfall tax.
02:14So the big income generator will be the Treasury.
02:19In terms of who else will profit, there are 23 million homes in the UK.
02:25That's 85% of the UK housing stock that use gas for heating and cooking.
02:31And, of course, electrical baseload.
02:33Last year, gas met the needs of around a quarter of our UK needs for electricity supply.
02:42And on days when it is cold, dark and windless, so winter nights, gas can sometimes provide over 50%
02:51of our baseload.
02:52So having domestic gas rather than relying on imports, as we face a winter with low storage and expensive imports,
03:00it does guarantee additional gas supplies.
03:03And as you said earlier, it will provide gas for the next decade.
03:09There are two and a half million homes here in Scotland.
03:12And half of those, half of those can be fuelled by the gas from Jackdaw alone.
03:19So you're up in Aberdeen. Is it good news up there? How are people responding?
03:24So, yes, there is encouragement. It is welcomed by the sector.
03:28It's been welcomed by people in and around the city.
03:34It is important to realise, though, that this is just the first step.
03:38And further changes would be needed, meaning approval of Rosebank, revoking the EPL or revising it,
03:45that is the Energy Profits Windfall Tax, and greater clarity around licensing in order to restore confidence
03:53and to see investment coming back into the basin.
03:56Thank you so much. We'll have to watch that. Professor Underhill, thanks for your time.
03:59Back to you, Juliet.
04:00Thanks, Catherine.
