UK seeks more North Sea oil and gas

Many more exploration licences possible as new Truss government seeks to boost energy supplies

published : 8 Sep 2022 at 16:43

LONDON: The British government is expected to announce dozens of new North Sea oil and gas exploration licences in an effort to boost domestic production, according to two sources familiar with the government’s discussions.

The exact number of new licences was still to be confirmed, said one of the sources, who spoke on condition of anonymity. The other said it could be as many as 130.

The announcement could come ater on Thursday, when Prime Minister Liz Truss, who was appointed on Tuesday, is due to set out to parliament her government’s plans for tackling soaring energy bills.

During the leadership campaign, Truss repeatedly said boosting domestic energy supply would be part of her focus in seeking to bring down prices.

Like many countries, especially in Europe, Britain is facing skyrocketing energy costs this coming winter because of fuel shortages linked to the Russia-Ukrain war and other factors.

As the same time, countries are trying to live up to their global commitments to reduce greenhouse-gas emissions to slow global warming. Britain officially aims to reach net-zero carbon dioxide emissions by 2050. But to meet all its energy needs in the years between now and then, it may need to keep relying on fossil fuels until more alternative sources come online.

Truss’s office did not comment directly on the North Sea licences but noted that the prime minister had told parliament the government would increase supply through North Sea resources and more nuclear power stations.

The licensing round will not offer any short-term relief to energy bills as it typically takes between five to 10 years from initial exploration until oil and gas is produced from a field.

Britain’s last offshore licensing round took place in 2020.