Prime Minister Rishi Sunak has confirmed the granting of hundreds of new oil and gas licences in the North Sea. The announcement, made on Monday, underlines the UK Government’s steadfast support for the oil and gas industry. As part of its strategy to achieve greater energy self-sufficiency.
The UK Government, in conjunction with the North Sea Transition Authority (NSTA), unveiled a joint commitment to conduct future licensing rounds while maintaining a strict climate compatibility test. This approach will enable a more flexible application process, potentially offering licenses in proximity to existing licensed areas. This unlocking of vital reserves, with the benefit of established infrastructure and prior assessments. It is expected to expedite bringing these resources online.
Anticipating that approximately 25% of the UK’s energy demand will still be met by oil and gas when the nation reaches net zero emissions in 2050. The government aims to counter the rapid decline in domestic oil and gas production. By securing the country’s energy supply and reducing dependence on foreign imports. The UK intends to fortify its energy security while safeguarding more than 200,000 jobs within this crucial industry.
Addressing Energy Demand and Security
During a visit to a critical energy infrastructure site in Aberdeenshire, Rishi Sunak emphasised the pivotal role the region will play in advancing the UK’s energy independence. He also met with skilled apprentices who are instrumental in driving forward these efforts.
At present, the NSTA is conducting the 33rd offshore oil and gas licensing round. With expectations that the first of the new licenses will be awarded in the coming autumn. The total round is projected to award over 100 licenses. Moreover, future licenses play a pivotal role in supporting energy security. In addition to carbon capture usage, storage initiatives, and hydrogen opportunities. The ultimate goal is to establish fully integrated offshore energy hubs that optimize existing infrastructure.
As oil and gas production in the UK has been in decline, the new licenses will mitigate the decline in domestic supply. Ensuring vital energy security while aligning the nation’s trajectory towards achieving net zero emissions by 2050.
Prime Minister Rishi Sunak underscored the importance of this decision, stating, “We have all witnessed how Putin has manipulated and weaponized energy – disrupting supply and stalling growth in countries around the world.”