Restart issuing oil and gas licenses in the North Sea

I would like the Government to reverse the policy of not issuing new contracts to search for and extract oil and gas in the North Sea and British waters.

We believe the North Sea oil and gas fields are a major part of our economy, and that the drive to net zero is making us colder and poorer. Until we have what we feel is a viable and cost effective alternative in place to oil and gas, we think we should make the most of the resources we have.

The UK oil and gas sector has long provided secure energy and skilled employment, and it will continue to be an integral part of our economy for decades to come.

Irrespective of the position on licences, however, there is an urgent need to plan for the future of the North Sea. North Sea oil and gas production is in natural decline, with a 72% reduction in production occurring between 1999 and 2023. The oil and gas industry has lost around a third of its direct workforce in the last decade.

Britain is well-placed to mobilise its natural advantage, using the skills and expertise of our offshore workforce and supply chain to get ahead in the global race for new jobs and industries. This opportunity is essential for our North Sea communities; embracing clean energy is the route to the jobs and investment of the future. That is why the government is speeding ahead with investing in clean energy jobs and industries.

The government is determined to coordinate the scale-up of the industries which will shape the future of the North Sea (including offshore wind, carbon capture and storage, hydrogen, and decommissioning) as oil and gas extraction in the North Sea declines. This is vital for delivering the best outcomes for workers and communities, energy security, and sustainable economic growth.

We are committed to delivering on the UK’s legally binding commitment to reach net zero greenhouse gas emissions by 2050. The scientific evidence is clear that to meet this goal and limit the worst effects of climate change, we must reduce our reliance on fossil fuels use over time. The transition to low carbon energy will help cut energy bills, improve our energy security, boost innovation and create high quality jobs across the UK. The alternative - failing to act on climate change – would expose the UK to more extreme weather and severe economic risks.

New licences to explore new fields would not lower prices for UK consumers. Oil and gas are traded on international markets, therefore domestically produced oil and gas does not mean cheaper prices. As long as consumers remain exposed to international energy markets through dependency on oil and gas, wherever it is produced, they will be vulnerable to shocks impacting energy costs which drove the cost-of-living crisis. While the UK’s energy system demonstrated its reliability, despite Russia cutting off most pipeline gas supplies to Europe, households and businesses across the UK felt the impact of rocketing international gas prices, wherever our gas was sourced from.

New licences to explore new fields would not meaningfully increase UK production levels, nor would they change the UK’s status as a net importer.

Increasing home grown, clean energy capacity is critical to improving long term security and affordability. That is why the Government is investing in energy efficiency, renewables and emerging technologies like hydrogen and carbon capture usage and storage (CCUS). These steps are designed not only to reduce emissions but to provide long term energy security and lower household bills. Our ambition is for the UK to become a global leader in clean energy innovation, creating new high-quality jobs and revitalising North Sea communities through investment in the green economy.

We have already announced that Great British Energy will be headquartered in Aberdeen, reflecting our commitment that the communities that powered our country’s energy past will continue to power its clean energy future. In addition, we have delivered a record-breaking renewables auction; worked with industry and unions to move forward on a ‘skills passport’ for offshore workers; and put clean energy at the heart of our modern industrial strategy.

This needs to be a fair, orderly and prosperous transition. We set out our detailed proposals in a recent consultation on ‘Building the North Sea’s energy future (https://www.gov.uk/government/consultations/building-the-north-seas-energy-future). We are currently analysing contributions to the consultation and will issue a government response in due course.

Department for Energy Security and Net Zero