New areas for oil and gas development on the UK’s North Sea continental shelf are to be made available through annual licensing rounds subject to net zero tests. These proposals by the UK government, outlined in the 2023 king’s speech to parliament, fly in the face of recommendations by the Climate Change Committee – the government’s own independent advisers.
The move should not be summarily dismissed as “political posturing” ahead of a general election, however. It may cause significant damage, not least because it distracts from critical questions surrounding how the UK will transition to low carbon energy.
Licences, under the 1998 Petroleum Act, are how the UK government grants companies exclusive rights “to search and bore for, and get, petroleum”. Companies are invited to bid for access to areas on the UK continental shelf which are pre-selected by the regulator (in consultation with industry).
