UK government moves to ban new North Sea oil and gas exploration

The UK government has moved to ban any new exploration for oil and gas in the North Sea, publishing legislation that would remove the North Sea Transition Authority's ability to grant new oil and gas licences. The Energy Independence Bill would 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. Ministers said the legislation upholds Labour's 2024 manifesto vow not to issue licences for new oil and gas fields and underpins its commitment to reducing global warming. If passed at Westminster, the bill would introduce Transitional Energy Certificates, allowing existing oil and gas fields to provide additional production from areas bordering or in close proximity to already licensed fields, or from areas already part of an existing field. The government said the move could produce about 60 million barrels of oil and support hundreds of jobs, and 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. Alongside it, the government 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". The announcement comes two weeks after the UK government approved production from the Jackdaw gas field off the coast of Aberdeen, which ministers said would help heat millions of homes. Environmental campaigners said that 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, but after legal challenges from environmental groups, Labour ministers have had to decide whether to continue with the projects. Rosebank, situated 80 miles north-west of Shetland, is thought to contain between 300 million and 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. Opponents argue it would accelerate the climate crisis, slow the transition to greener energy sources and do little to improve energy security, since its produce would largely be exported overseas to be refined. Greenpeace UK called the bill a "positive step forward for the clean energy transition" but urged the government to reject Rosebank. Amy McCarthy, the campaign group's head of politics, said: "Saying a resounding no to this oil field - a project that would annihilate every single climate or cost-of-living benefit achieved through this bill - must be step one to securing our power and protecting lives." Industry figures criticised the ban. Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said it made "no sense" to wind down North Sea production, adding: "Britain will continue to need oil and gas for decades to come. The question is whether we produce more of it here, supporting British jobs, investment and energy security, or pay other countries to produce it for us." David Whitehouse, chief executive of Offshore Energies UK, said the government was right to target energy affordability but should also prioritise energy security, noting that Britain imports more than 40% of the energy it needs. The Conservatives described the bills as "dangerous". Shadow Energy Secretary Andrew Bowie, the Tory MP for West Aberdeenshire and Kincardine, accused Labour ministers of being "utterly delusional" and "totally oblivious" to the "economic and energy threats this country faces", adding: "Might as well hang a closed for business sign over Aberdeen and the North Sea." Scotland's First Minister John Swinney has declined to give a definitive position on Rosebank, telling MSPs at Holyrood last month that the carbon emissions from an individual site's development must be assessed for compatibility with the journey to net zero, which he described as the legal obligation and test the UK government must go through.