The UK Government is reviewing its offshore oil and gas licensing regime as part of the wider aim of achieving net zero emissions by 2050.
The UK Government is reviewing its offshore oil and gas licensing regime as part of the wider aim of achieving net zero emissions by 2050.
Initial findings and next steps will be published in the upcoming Energy White Paper.
‘Over half of the UK’s electricity comes from clean sources including wind and solar energy. However, oil and natural gas are still required for heating, cooking and transport, and vital to the production of many everyday essentials such as medicines, plastics, cosmetics and household appliances. This is likely to remain the case over the coming decades as the UK transitions to low carbon solutions,’ said a UK government statement.
The UK’s independent Committee on Climate Change has recognized the continuing demand for oil and natural gas, including it in all scenarios it proposed for how the UK meets its target for achieving net zero emissions by 2050.
‘The oil and gas sector supports 270,000 jobs across the UK and plays a key role in developing the infrastructure and capability for green technologies such as carbon capture and storage and hydrogen power. The oil and gas sector is also a major source of tax revenue for public services and has provided more than £330 billion to the UK Government from production taxation alone in today’s prices,’ said a UK government statement.
The UK government will also publish the North Sea Transition Deal within the term of the current parliament, and will set out more details later this year of how it plans to work with the sector to support a transition to low carbon energy sources, while getting the benefit from the limited reserves in the North Sea and protecting highly skilled jobs.
The UK Oil and Gas Authority is implementing a programme to integrate net zero considerations into its core business. Licences awarded in the 32nd Offshore Licensing Round are expected to be stewarded under this new strategy
