The British Government has said hundred of new oil and gas licences will be granted as the Government continues to back the North Sea oil and gas industry as part of drive to make Britain more energy independent.
In a joint statement by the UK Govt and North Sea Transition Authority (NSTA) announced the commitment to undertake future licensing rounds, which will continue to be subject to a climate compatibility test.
To adopt a more flexible application process, UK govt said the licences could be offered near to currently licensed areas, unlocking vital reserves which can be brought online faster due to existing infrastructure and previous relevant assessments.
While stated that this will increase the UK’s energy security and reduce dependence on higher-emission imports, whilst protecting more than 200,000 jobs in a vital industry as we grow the UK economy.
Adding that the Prime Minister, Rishi Sunak will highlight the central role the region will play in strengthening the UK’s energy independence and meet the next generation of skilled apprentices key to driving this work forward at the energy infrastructure site in Aberdeenshire today.
Sunak reacting to this development said, “We have all witnessed how Russia’s Putin has manipulated and weaponised energy, disrupting supply and stalling growth in countries around the world.
Adding that, “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.
The Prime Minister said further, “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.
“We’re choosing to power up Britain from Britain and invest in crucial industries such as carbon capture and storage, rather than depend on more carbon intensive gas imports from overseas which will support thousands of skilled jobs, unlock opportunities for green technologies and grow the economy”, he said.
Meanwhile, the UK’s oil and gas industry are also vital to driving forward and investing in clean technologies that needed to realise net zero target, like carbon capture usage and storage, by drawing from the sector’s existing supply chains, expertise and key skills whilst protecting jobs.
The UK has one of the largest potential carbon dioxide storage capacities in Europe, making the North Sea one of the most attractive business environments for CCUS technology.
While UK Government has committed to provide up to £20 billion in funding for early deployment of CCUS, unlocking private investment and job creation.