The UK Government has today confirmed its support for a new oil and gas licensing round in the North Sea, expected to be launched by the North Sea Transition Authority (NSTA) in early October.
Business and Energy Secretary Jacob Rees-Mogg said: “In light of Putin’s illegal invasion of Ukraine and weaponisation of energy, strengthening our energy security is an absolute priority, and we are going to ensure the UK is a net energy exporter by 2040.
“To get there we will need to explore all avenues available to us through solar, wind, oil and gas production - so it’s right that we’ve lifted the pause to realise any potential sources of domestic gas.”
Scottish Secretary Alister Jack added: “This new round of oil and gas licensing, which is expected to lead to more than 100 new licences, will not only safeguard our domestic supply and protect UK households, businesses and public services from volatile global prices, it will also support more than 70,000 energy sector jobs in Scotland.
“Supporting this sector has always been a vital part of our net zero strategy, ensuring we have energy resilience while investing in renewable sources such as wind, tidal and solar power.”
Under the new licensing round, which follows the outcome of the Climate Compatibility Checkpoint, the NSTA is expected to make a number of new ‘blocks’ of the UK Continental Shelf available, for applicants to bid for licences.
These licenses will enable developers to search for commercially viable oil and gas sources within their designated areas. Developers will still need to seek regulatory approval for any activities conducted, such as drilling or construction of infrastructure.
The UK Government is also formally lifting the moratorium on shale gas extraction in England and will consider future applications for hydraulic fracturing consent with the domestic and global need for gas in mind and where there is local support.
In Scotland, the issuing of fracking licenses is a matter for the Scottish Government.
Philip Evans, energy security campaigner for Greenpeace UK, said: “New licences torpedo the UK’s energy security - they take decades to get going and the fuels will just be sold to the highest bidder on the international market - doing nothing to lower bills here in the UK.
“The government is pandering to outdated, fringe fossil fuel interests, meanwhile Europe strides ahead with tangible solutions like home insulation, heat-pumps, solar panels, and windfall taxes to finance these urgent fixes.
“New fossil fuel licences are the opposite of energy security - we believe this licensing round is unlawful and we’ll be looking at taking legal action.”
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