Government promises to support UK oil and gas amid North Sea exploration restrictions

THE UK government looks set to follow through on its manifesto promise to ban new oil and gas exploration in the North Sea – though it has left the door open for existing fields to be extended.

The proposals, part of a consultation paper prepared by the Department for Energy Security and Net Zero (DESNZ), state a desire to “drive” offshore clean energy production in the North Sea, while supporting production of existing oil and gas fields to protect domestic supply and jobs.

Ed Miliband, energy secretary, said: “Oil and gas production will continue to play an important role and, as the world embraces the drive to clean energy, the North Sea can power our Plan for Change and clean energy future in the decades ahead.

“This consultation is about a dialogue with North Sea communities – businesses, trade unions, workers, environmental groups and communities – to develop a plan that enables us to take advantage of the tremendous opportunities of the years ahead.”

Exploration restrictions

• The government expects to consult with industry and regulators to help deliver its commitment to end new licences, which will include all new seaward exploration and production licences.

The decision reaffirms the government’s belief that the current plans for global oil and gas production are “not compatible” with the UK’s climate obligations and limiting global warming to 1.5°C.

It also follows the recent Scottish Court ruling that found the approval of Equinor’s Rosebank and Shell’s Jackdaw oil field exploration projects to be unlawful as they only considered direct drilling emissions (Scope 1 and 2). The government is now working on new guidance for oil and gas firms which will consider Scope 3 emissions, which involves additional CO2 output produced from oil and gas customers.

However, the restrictions do not include licence extensions and transfers, including the possibility for new fields to be drilled adjacent to existing ones, which will be allowed to operate for the entirety of their lifetime. This follows the government’s additional commitment not to revoke existing licences.

Clean energy jobs

Though existing production will continue, North Sea oil and gas is in decline, with production decreasing by 72% between 1999 and 2023. The government intends to support existing oil and gas workers by transferring their expertise to clean power.

Offshore Energies UK estimates that there were more than 120,000 jobs supported directly and indirectly by oil and gas in 2023. The government estimates that the offshore renewables workforce, which includes wind, CCUS, and hydrogen, could increase to between 70,000 and 138,000 in 2030.

Research from Aberdeen’s Robert Gordon University found that 90% of the UK’s oil and gas workforce have medium to high skills transferability to work in adjacent energy sectors, including hydrogen and wind.

To facilitate further job transferability, the government has implemented several initiatives, including the recently launched energy skills passport, and the Office for Clean Energy Jobs, which is working with trade unions to target areas of upskilling and reskilling for workers.

Sue Ferns, senior deputy general secretary of trade union Prospect, said: “Delivering meaningful numbers of new jobs will also require bringing supply chains for the renewables sector on shore, something that will need the government’s industrial strategy to run in lockstep with this plan.”

The consultation began on 5 March and will run for eight weeks, ending on 30 April.