The announcement follows the release of a new analysis by the NSTA, which shows that the carbon footprint of domestically produced gas is approximately one-quarter of the carbon footprint of imported LNG
British Prime Minister Rishi Sunak has confirmed that hundreds of new oil and gas licences will be granted in the UK North Sea with an intent to boost the country’s energy independence and grow its economy.
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Sunak expects the new North Sea licences to enhance energy independence and promote economic growth. (Credit: Ben Wicks on Unsplash)
The UK government, in partnership with the North Sea Transition Authority (NSTA), is declaring a joint commitment to conduct future licensing rounds, subject to a climate compatibility test.
The NSTA is presently conducting the 33rd offshore oil and gas licensing round. The executive non-departmental public body anticipates awarding the first of the new licenses in the autumn, with a total of over 100 licenses expected to be granted in this round.
By taking a more flexible application process, licenses may also be offered in close proximity to existing licensed areas, said the Prime Minister's Office. This is expected to unlock essential reserves that can be brought online faster, benefiting from already available infrastructure as well as previous relevant assessments.
The announcement follows the release of a new analysis by the NSTA, which reveals that the carbon footprint of domestic gas production is approximately one-quarter of the carbon footprint of imported liquefied natural gas (LNG).
The government is implementing measures to curb the rapid decline in domestic oil and gas production. This is in line with the independent Climate Change Committee’s forecasts that approximately a quarter of the UK's energy demand will continue to be fulfilled by oil and gas when the country achieves net zero in 2050.
The strategy aims to safeguard the nation's domestic energy supply and reduce dependence on unfriendly states, said the Prime Minister's Office.
According to the NSTA, the UK's natural gas supply was 63% imported in 2022.
Rishi Sunak said: “We have all witnessed how Putin has manipulated and weaponised energy – disrupting supply and stalling growth in countries around the world.
“Now more than ever, it’s vital that we bolster our energy security and capitalise on that independence to deliver more affordable, clean energy to British homes and businesses.
“Even when we’ve reached net zero in 2050, a quarter of our energy needs will come from oil and gas. But there are those who would rather that it come from hostile states than from the supplies we have here at home.”
In addition, the Prime Minister's announcement is expected to enhance the UK's energy security and lessen reliance on high-emission imports, all the while safeguarding over 200,000 jobs in a crucial industry as the UK economy continues to grow.
The British government has also officially selected the Acorn project in North East Scotland and the Viking project in the Humber as the third and fourth carbon capture usage and storage clusters in the UK.
