The Government is to review its policy on the UK’s future offshore oil and gas licensing regime as part of its plans to achieve net zero emissions by 2050.
Initial findings and next steps will be published in the forthcoming Energy White Paper.
More than half of the UK’s electricity comes from renewables including wind and solar energy, but oil and natural gas are still needed for heating, cooking and transport, and to produce medicines, plastics, cosmetics and household appliances.
The oil and gas sector supports 270,000 jobs across the UK and provides more than £330bn from production taxation.
The announcement of the review came last Thursday (3 September) as the Oil and Gas Authority (OGA) announced the outcome of the 32nd licensing round for North Sea exploration for 113 licence areas over 260 blocks or part-blocks to 65 companies. bit.ly/3bEjzbx
The OGA is also reviewing its core strategy to help industry meet the UK’s climate change goals.
The upcoming North Sea Transition Deal is due to be published this year and will set out how Government will work with the sector to achieve a transition to low carbon energy sources, while obtaining North Sea reserves and protecting skilled jobs.