The Prime Minister has confirmed today (31st July), that hundreds of new oil and gas licenses will be granted in the UK as new analysis shows domestic gas production has around one-quarter the carbon footprint of imported liquified natural gas.
The Government and the North Sea Transition Authority (NSTA) are today announcing a joint commitment to undertake future licensing rounds, which will continue to be subject to a climate compatibility test.
By adopting a more flexible application process, licences could also be offered near to currently licensed areas – unlocking vital reserves which can be brought online faster due to existing infrastructure and previous relevant assessments.
With the independent Climate Change Committee predicting around a quarter of the UK’s energy demand will still be met by oil and gas when the UK reaches net zero in 2050, the Government is taking steps to slow the rapid decline in domestic production of oil and gas, which will secure our domestic energy supply and reduce reliance on hostile states.
This will increase the UK’s energy security and reduce dependence on higher-emission imports, whilst protecting more than 200,000 jobs in a vital industry as we grow the UK economy.
The NSTA expect the first of the new licences to be awarded in the autumn, with the round expected to award over 100 licences in total.
Source: Prime Minister’s Office, 10 Downing Street.