Climate1 min read

UK government to outlaw new North Sea drilling

By · Published by Everything Blog

In short

The Energy Independence Bill revokes the North Sea Transition Authority's licensing powers while establishing a £2bn green energy fund financed by extraction taxes. To balance the transition, new Transitional Energy Certificates will allow operators to draw an estimated 60 million barrels of oil from areas bordering or within existing fields. Meanwhile, the legislation will not reverse contested decisions on major previously approved projects like the Jackdaw gas field or the Rosebank field off Shetland.

Key points

  • The legislation does not revoke the controversial approvals previously granted for the ma…: The legislation does not revoke the controversial approvals previously granted for the massive Rosebank and Jackdaw offshore fields.
  • Ministers argue the policy will permanently reduce household energy bills and accelerate…: Ministers argue the policy will permanently reduce household energy bills and accelerate national electricity grid connections.
  • Opponents and industry groups warn that curbing domestic oil production threatens British…: Opponents and industry groups warn that curbing domestic oil production threatens British employment and heightens dependency on imported energy.

Sources checked by our analysis pipeline: 1

- Published

The UK government has moved to ban any new exploration for oil and gas in the North Sea.

The Energy Independence Bill would remove the North Sea Transition Authority's ability to grant new oil and gas licences.

The legislation will not affect the decision on whether to allow drilling at Rosebank off Shetland - the UK's largest known untapped field - which was approved in 2022 before being subject to legal challenges.

The UK government said it was upholding Labour's 2024 manifesto vow not to issue licences for new oil and gas fields, as well as underpinning its commitment to reducing global warming.

The Conservatives described the bills as "dangerous", accusing Labour ministers of being "totally oblivious the economic and energy threats this country faces".

The Energy Independence Bill, if passed at Westminster, would introduce Transitional Energy Certificates, which would allow existing oil and gas fields to provide additional production from "areas bordering or in close proximity to already licensed fields" or in areas that are already part of an existing field.

The government said the move could…

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