The UK government has moved to ban any new exploration for oil and gas in the North Sea. The Energy Independence Bill would remove the North Sea Transition Authority's ability to grant new oil and gas licences. The legislation will not affect the decision on whether to allow drilling at Rosebank off Shetland - the UK's largest known untapped field - which was approved in 2022 before being subject to legal challenges.
The UK government said it was upholding Labour's 2024 manifesto vow not to issue licences for new oil and gas fields, as well as underpinning its commitment to reducing global warming. The Conservatives described the bills as "dangerous", accusing Labour ministers of being "totally oblivious the economic and energy threats this country faces". Burnham defends Jackdaw decision as Badenoch urges PM to overturn ban on new oil and gas licences Rosebank: Life on the oil field at the centre of a political storm The Energy Independence Bill, if passed at Westminster, would introduce Transitional Energy Certificates, which would allow existing oil and gas fields to provide additional production from "areas bordering or in close proximity to already licensed fields" or in areas that are already part of an existing field.
The government said the move could produce about 60 million barrels of oil and support hundreds of jobs. It vowed to sustain "growth and investment across North Sea communities as the energy sector transitions". The wide-ranging bill would also formally scrap gas standing charges and introduce reforms designed to speed up grid connections.
The UK government has also announced the establishment of an energy wealth fund using tax revenue from oil and gas extraction, with an initial £2bn of funding, to invest in renewable and low carbon energy projects. Prime Minister Andy Burnham said: "Together, these changes will bring bills down for good, give families greater security and put Britain back in control of its energy future." Energy Secretary Miatta Fahnbulleh said the bill would help to "build a clean energy future which people feel in their pockets, households and communities, ensuring support reaches those who need it most". It comes two weeks after the UK government approved production from the Jackdaw gas field in the North Sea.
Ministers said the site, off the coast of Aberdeen, would help heat millions of homes. Environmental campaigners said the decision would hamper efforts to tackle climate change and make "no meaningful difference" to UK energy security. Both Jackdaw and Rosebank were approved by the previous Conservative government.
However, after being subject to legal challenges from environmental groups, Labour ministers have had to decide whether to continue with the projects. Situated 80 miles north-west of Shetland, Rosebank is thought to contain between 300 million to 500 million barrels of oil. Backers say it would be a vital lifeline to the energy industry in the north east of Scotland, and improve energy security at a time when global supply chains are disrupted by conflict.
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