Ministers ‘considering ban’ on new North Sea exploration
The government is considering banning new licenses to explore for oil in the North Sea, in what could be the first death knell for the basin.
Ministers are weighing up a number of options for the continental shelf, the Telegraph reported, including a ban on licenses from 2040 or a temporary pause in licenses.
It is also possible that there will be no changes made to the licensing regime for the continental shelf.
The UK oil and gas industry is keenly awaiting the government’s so-called transition deal for the North Sea, which is expected to be published in the coming weeks.
Any end to licensing would be a dramatic statement of intent from the UK ahead of this year’s United Nations climate change conference in Glasgow.
The report comes just a week after ministers were slammed by MPs for having “no plan” as to how to achieve the UK’s net zero goal.
But with fossil fuels – and gas especially – still vital to the country’s energy supplies, any decision to end new North Sea exploration would have radical consequences.
The worst of these would likely be felt in Scotland, where 39 per cent of the 270,000 UK oil and gas jobs are located.
In addition, revenues from oil and gas from the basin is often cited by the Scottish National Party (SNP) as proof that an independent Scotland could be a fiscal success.
City A.M. has contacted the Department for Business, Energy and Industrial Strategy for comment.