The UK Government and the North Sea Transition Authority (NSTA) have announced a joint commitment to undertake future oil and gas licensing rounds, with at least 100 new licenses and possibly many more expected to be awarded from autumn. This includes the possibility that licences could also be offered near to currently licensed areas where reserves can be brought online faster due to existing infrastructure and previous relevant assessments. To read the full announcement from the Prime Minister’s Office click here

There have been strong reactions to the announcement.  A report in The Guardian quotes the Prime Minister’s press secretary arguing that new licences would be “totally compatible” with the goal to achieve net zero by 2050, given fossil fuels would still be needed then, and domestic supplies required less transport. Mike Childs, the head of policy for Friends of the Earth, is quoted as saying: “Climate change is already battering the planet with unprecedented wildfires and heatwaves across the globe. Granting hundreds of new oil and gas licences will simply pour more fuel on the flames, while doing nothing for energy security as these fossil fuels will be sold on international markets and not reserved for UK use.”

Plans for two new carbon capture and storage facilities for development by 2030 (Acorn at St Fergus near Peterhead and Viking in the Humber) have also been announced.  The two new sites are in addition to two sites in the north of England (the East Coast Cluster and the HyNet North West project in Liverpool Bay) which were approved for support through the £1bn carbon capture fund in October 2021.

Earlier this month, research carried out by The Crown Estate and Crown Estate Scotland indicated a strong desire amongst the carbon capture, utilisation and storage (CCUS) developer community to expand the sector and make greater use of UK waters for carbon storage activity. There was interest in all regions of the UK continental shelf, with the Southern North Sea being of particular interest.

This area is close to known carbon emitters (for example, in clusters of industry along the east coast of England). Developers were also keen to see a more streamlined process for the leasing and licensing of storage sites. To read more click here

To read the full announcement from the Prime Minister’s Office click here