• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 16 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days The United States produced more crude oil than any nation, at any time.
  • 1 day Could Someone Give Me Insights on the Future of Renewable Energy?
  • 16 hours How Far Have We Really Gotten With Alternative Energy
  • 11 hours Bankruptcy in the Industry

Centrica Ditches Plans To Ditch Natural Gas Fields In Major Strategy Shift

Natural gas is looking too profitable of a venture for Centrica to make good on its previous plans to sell its UK North Sea natural gas fields, Centrica's CEO told reporters on Thursday.

After last year's natural gas crisis in Europe that sent prices sky high, CEO Chris O'Shea dubbed the previously taboo fields as "a key part of our portfolio".

Just a few short years ago, Centrica announced it would exit oil and gas exploration and production by the end of 2020 as the owner of British Gas planned on moving away from fossil fuels production and into low-carbon energy services.

"Today, we have announced our intention to exit oil and gas production. This will complete our shift towards the customer, as we focus on our distinctive strengths, with an emphasis on helping our customers transition to a lower carbon future," Centrica's then-CEO Iain Conn said at the time, adding that a refocusing of its portfolio would "unlock further efficiencies enabling us to be even more cost competitive.

But now, it's looking like the natural gas market—particularly in the UK—may be just too hard to quit. Instead, it said its UK gas developments “will decline naturally over time” and will be replaced with greener prospects.

Centrica announced major returns for shareholders on Thursday as its H1 profits skyrocketed on its British Gas supply business increasing to 969 million pounds vs 98 million pounds a year ago, as energy bills for British consumers rose.

“To be sustainable and stable you have got to make a profit,” O’Shea said on Thursday.

By Julianne Geiger for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News