Oil licences ‘good news’
A NEW licensing round for oil and gas exploration in the North Sea will be ‘good for the environment,’ climate minister Graham Stuart has said.
The North Sea Transition Authority (NSTA) will begin the 33rd round of offshore licences, with the UK Government arguing increasing production will boost the economy and energy security.
“Our development is not going to affect our usage,” Mr Stuart said, “I know it sounds contradictory – but it’s actually good for the environment.”
But Green Party co-leader Adrian Ramsay said: “We can only hope to hold global warming to under 1.5°C if we leave fossil fuels in the ground.
“The Government’s claim that burning ever more fossil fuels from the North Sea will help the UK meet its international obligations to become net-zero by 2050 has no connection to reality – we truly have stepped through the looking glass.”
Mr Stuart said a new licensing round for oil and gas exploration is ‘entirely compatible’ with climate targets, and ‘we have one of the lowest emitting production systems for oil and gas.’
The climate minister said: “Actually it’s good for the environment, because when we burn our own gas it’s got lower emissions around its production than foreign gas... as well as supporting British jobs.
“Our development is not going to affect our usage, our usage is determined by the framework of the Climate Change Act and the independent Climate Change Committee which informs Government policy.
“So you really can be assured that it’s actually – I know it sounds contradictory – but it’s actually good for the environment that we are going to produce more of our gas and oil at home.”
Licences are being made available for sectors of the North Sea – known as blocks – with the NSTA estimating more than 100 may be granted.
Companies are being urged to apply for licences covering areas to the west of Shetland, in the northern North Sea, the central North Sea, the southern North Sea and east Irish Sea.
A total of 898 blocks and partblocks are being made available but in a bid to encourage production of new oil and gas supplies as quickly as possible, the NSTA has identified four ‘priority cluster areas’ in the southern North Sea.
Business Secretary Jacob Reesmogg said: “Putin’s illegal invasion of Ukraine means it is now more important than ever that we make the most of sovereign energy resources, strengthening our energy security now and into the future.
“Ensuring our energy independence means exploiting the full potential of our North Sea assets.”