SPDR S&P 500 ETF (ETF:SPY) – UK plans to expand domestic energy resources while weaning off Russian oil: report

The British government is working to consider different domestic energy resources, including offshore drilling and hydraulic fracturing, in order to get the country out of its dependence on Russian energy.

What happened: According to a Bloomberg report, the UK aims to save $5.3 billion this year that would have been spent on Russian oil imports by moving towards national energy self-sufficiency. Although Russian imports represent less than 4% of the country’s energy supply, the ongoing Russian war in Ukraine has exposed a strain of economic fragility that by Prime Minister Boris Johnson the government is rushing to mitigate.

“We have to deal with the long-term impacts of soaring energy prices, and that’s why I will be presenting an energy independence plan for this country over the next few days,” Johnson said in a speech to bedroom. of the Commons on Wednesday. The aim is to “prepare our employees for the long term with a sustainable and cost-effective energy supply”.

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What happens next: Among the domestic energy resources being considered are new licenses for oil and gas drilling in the North Sea, hydraulic fracturing in the UK and the installation of new onshore wind developments.

business secretary Kwasi Kwarteng also raised the possibility of adding new nuclear power facilities, with the promise of “more cash for future major projects”. He also said the government was working with companies to find alternative supplies through a new task force including entities from the United States, the Netherlands and Persian Gulf countries.

“We fully intend and must end our dependence on all Russian oil and gas hydrocarbons,” Kwarteng told the House of Commons. “Companies should use this year to make the transition as smooth as possible to ensure consumers are not affected.”

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