Shell’s decision to pull out of the UK’s undeveloped Cambo ofshore oil project is unlikely to be enough to deter North Sea investment, but the energy transition pressures behind its exit are making investment in the area tougher for all frms. Shell attributes its move to weak project economics as well as the potential for delays. But analysts say business risk weighed heavily on the frm’s decision. Cambo has become a focal point for UK climate protestors, and Shell is likely to have seen little worth in struggling to develop Cambo just as it faces fresh pressure from a Dutch court ruling to accelerate its emissions reductions.
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