Treasury wary of energy prices rises over Red Sea tensions

Commenting on the news that the Treasury has modelled scenarios around tensions in the Red Sea region causing further energy price volatility [1] Peter Chalkley, Director of the Energy and Climate Intelligence Unit (ECIU) said: “Two years on from the Russian invasion of Ukraine, this is a reminder if one were needed that over-reliance on oil and gas carries heavy economic risks.

"The North Sea is in ongoing decline and new licences won’t make a dent in that. Any oil and gas will be sold at market prices largely dictated by international events.

“When you realise that you also recognise that building out UK renewables for the long-term, deploying EVs that run on British electricity and cutting our gas demand by insulating homes and switching to heat pumps a matter of not just energy security but national security. Investment in these technologies now will build UK energy independence.”

ENDS

Notes to editors:

1. Oil prices rise on US-UK strikes over Red Sea attacks: https://www.bbc.co.uk/news/business-67947795

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, Tel: +44 (0)7894 571 153, email: george.smeeton@eciu.net