UK oil and gas given support amid North Sea exploration restrictions

Government consultation opens on plans to end new licences

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 licenses, 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.

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