The government has announced plans for hundreds of new oil and gas licenses, claiming it will help shore up the economy and pave the way for energy independence.
It has also claimed there will be little climate impact, citing new analysis from the North Sea Transition Authority (NSTA). In this, the NSTA said domestically produced gas works out around four times cleaner than importing liquified natural gas. This is due to the way the gas is transferred, as well as the methods of extraction in certain cases.
Therefore, the government and NSTA are jointly committed to new licensing rounds. These will be subject to a climate computability test and see a more flexible application process adopted. This could see licenses offered near to areas that have already been licensed, allowing reserves to be brought online faster, making use of existing infrastructure and previous assessments.
The new licenses are now expected to be awarded in the autumn.
However, despite the government’s claims, many are unconvinced, including former Energy Minister, Chris Skidmore, who carried out an independent review into the government’s approach to net zero.
Posting on his Twitter account, Skidmore called it “the wrong decision at precisely the wrong time”, noting how the rest of the world is experiencing record heat waves. He also expressed reservations with how the decision had been announced when MPs were away on recess and pledged to call for an emergency debate “as soon as we return”.
Skidmore continued: “It is on the wrong side of a future economy that will be focused on renewable and clean industries and not fossil fuels. It is on the wrong side of modern votes who will vote with their feet at the next General Election for parties that protect, and not threaten, our environment. And it is on the wrong side of history, that will not look favourably on the decision taken today.”
The Energy and Climate Intelligence Unit (ECIU), meanwhile, pointed out how the government is currently subsidising oil and gas companies to drill more in the North Sea.
Jess Ralston, Head of Energy at the ECIU, continued: “This will not bring down bills as there isn’t enough gas to move the dial on international market prices and the oil and gas industry’s own estimates show the North Sea will continue to decline no matter what the government policy is.”
Ralston warned that prioritising oil and gas instead of cheaper renewables and pushing back regulations on insulation in rental homes – both of which would actually bring down bills – is against the advice of the International Energy Agency, United Nations and Climate Change Committee.
“The OBR has warned the UK’s heavy gas dependency could see the national debt go up by 13% of GDP as similar gas price crises happen in future. This decision and its timing will also be questioned internationally, as global warming continues to drive extreme weather like heatwaves and wildfires devastating Europe and Canada today.”
