Shell PLC (LSE:SHEL, NYSE:SHEL) is reconsidering its decision not to invest in the Cambo oil field off the west coast of the Shetlands, according to the BBC.
In December, the FTSE 100 giant announced that it would drop plans to develop the controversial Cambo oil field in the North Sea on commercial grounds, saying the economic case for investment in the project was not strong enough “at this time”.
Since then, the price of oil has soared from December’s level of circa US$70 to around US$117, which has changed the economic case, while there is also now a political imperative to reduce dependence in the West on energy supplies from Russia.
READ Shell pulls out of controversial Cambo oil field development
Cambo is 30% owned by Shell, with Siccar Point Energy holding the remaining 70%.
The Cambo field, which is located off the Shetland islands, has been at the centre of campaigns by climate activists trying to stop new fossil fuel developments as the UK seeks to become a net zero carbon economy by 2050.
When Shell announced its decision not to proceed with the project a jubilant campaigner for conservation group Greenpeace described it as a potential “death blow” for Cambo, while Friends of the Earth tweeted: "The future of the project is now in serious doubt - as it should be."
The BBC said it has been informed that Shell's official position on the project has not changed but it has taken heed of the change in the economic, political and regulatory environment.