UK government moves to ban new North Sea oil and gas licensing

The UK government has introduced legislation to stop new oil and gas exploration licences being issued in the North Sea.

The Energy Independence Bill, introduced on Wednesday, would remove the North Sea Transition Authority’s power to grant new licences for exploring previously untapped oil and gas fields.

The move fulfils a Labour manifesto commitment made ahead of the 2024 general election.

The government said this could unlock around 60 million barrels of oil and support hundreds of jobs.

However, the legislation will not affect the future of the UK’s largest known undeveloped oil field, the controversial Rosebank development.

Rosebank, located around 80 miles northwest of Shetland, is thought to contain between 300m and 500m barrels of oil. The new Bill is not intended to determine the outcome of the separate decision on whether Rosebank can proceed.

The plans come amid continued debate over the future of the North Sea industry.

Scotland’s First Minister John Swinney has previously declined to give a definitive position on whether the project should receive the go-ahead, telling MSPs that its emissions must be assessed against the UK’s legal obligations to reach net zero.

The government said oil and gas would remain part of the UK’s energy mix for decades, and pledged to support workers and communities through the transition to cleaner energy.

It also pointed to a £2bn Energy Wealth Fund, which will use tax revenue from oil and gas extraction to invest in renewable and low-carbon energy projects.

Other measures include plans to scrap household gas standing charges, strengthen consumer protections and give local authorities greater powers to tackle landlords who fail to meet energy efficiency standards.

Prime Minister Andy Burnham said the Bill would help protect households from high energy costs, give communities a greater stake in local energy projects and increase the UK’s control over its energy supply.

He said: “For too long, families have paid the price for an energy system that isn’t working for them. Bills are too high, and events around the world can send costs soaring.

“That’s why we’ve taken immediate action to help people with energy bills, with £50 off the annual price cap and our new £100 energy payment for 20 million households.

“And this Bill will make the changes needed for the long-term: protecting people when energy companies let them down, giving communities a stake in the power produced on their doorstep, and building more cheap, green power here at home.

“Together, these changes will bring bills down for good, give families greater security and put Britain back in control of its energy future.”

The legislation will now need to pass through Parliament before becoming law.

The Conservatives criticised the plans, branding the legislation “dangerous”.

Conservative shadow energy secretary Andrew Bowie MP said: “This dangerous bill proves how detached from reality the UK Labour government are about our energy security.

“They may as well hang a closed for business sign over Aberdeen and the North Sea after deciding to double down on their plans to ban any new drilling.

“This will be disastrous for the tens of thousands of workers in the oil and gas sector and leave us increasingly reliant on dirty imports to meet our energy needs.

“Granting Jackdaw should have only been the start from Andy Burnham’s party, not a one-off.

“Labour remain hostile towards the industry and have learned nothing by pressing ahead with these reckless plans. At a time of huge volatility around the world, we should be maximising our own resources from the North Sea, and the Conservatives will oppose this every step of the way.”