Over 100 New North Sea Licences Offered By Government

1 August 2023 – During his visit to Scotland, Rishi Sunak announced that the Government plans to give out over 100 new North Sea licences, causing widespread criticism.

A report by the International Energy Agency, which was commissioned by the UK Government in 2021, said that no new investments in oil, gas or coal should be made.

Scientists agreed, arguing that any new fossil fuel development would destroy the world’s chances to keep the global temperature below 1.5°C.

Despite this, the Prime Minister has this week unveiled plans to give out more than 100 new North Sea licences for gas and oil drilling off the coast of Scotland.

Government Seems To Move Away From Green Policies

Although the Government has talked about considering giving out new licences for North Sea drilling for a little while, the Conservatives seem to move a way from green policies. The recent unexpected win of the Uxbridge by-election appears to have reinforced this shift.

Both Labour and the Conservatives agree that the issue that decided the by-election was the planned expansion of London’s ultra-low emission zone (ULEZ). After the narrow win, Rishi Sunak ordered a review into low traffic neighbourhoods (LTNs) in England.

He also said that he does not want to reach the net-zero target by adding to the burden of hard-working families or banning things. Mr Sunak also said that he would fly to Scotland as normal, rather than taking the train, which would be the more environmentally friendly option.

Many commentators believe that the Prime Minister is positioning his party at the opposite site of this issue to Labour, who have pledged to put green policies at the heart of their economic strategy.

Sir Keir Starmer has said that Labour wouldn’t allow any new fossil fuel developments in the UK if they win the next election. His party plans to invest in green energy instead.

Even so, he has asked London’s mayor Sadiq Khan to reflect on the ULEZ expansion after the Uxbridge by-election loss. He wants Mr Khan to consider how to make it easier for people in the affected areas.

The most recent announcement by the PM to grant a high number of new North Sea licences is a clear line opposed to Labour’s stance. But not just opposition parties and climate groups have criticised the decision.

MPs from his own party have raised concerns about the policy. Conservative MP Chris Skidmore, who led a review into net-zero for the Government, has also criticised the plans.

It is on the wrong side of a future economy that will be founded on renewable and clean industries, and not fossil fuels. It is on the wrong side of modern voters who will vote with their feet at the next general election for parties that protect, and not threaten, our environment. And it is on the wrong side of history, that will not look favourably on the decision taken today.

Chris Skidmore, Conservative MP

New North Sea Licences Compatible With Climate Targets Mr Sunak Claims

Defending the Government’s decision, the Prime Minister claims that it is consistent with the UK’s net-zero targets. Expanding the domestic production of gas and oil would ensure the UK’s energy security and keep the prices low for households, he explained during his visit in Scotland.

Mr Sunak also pointed to a recently released report by the North Sea Transition Authority, that suggests using domestically produced oil and gas releases three to four times less carbon emissions than imported fossil fuels.

However, green campaign group Uplift has questioned whether domestic fossil fuel production is better for our planet than imports.

The UK is in the bottom half of the global table in terms of how clean its oil and production is. The government often points to the most carbon-intensive form of imports, but the truth is that the main source of our gas imports is by pipeline and is much cleaner than UK-produced gas.

Tessa Khan, Founder and Director of Uplift

The environmental group has also analysed government data and concluded that new UK oil and gas fields would not contribute to the UK’s energy security or lower prices for UK households.

Uplift suggests that the majority of oil and gas produced in the UK is exported to the highest bidder, rather than used to heat and power UK homes. It is likely that any additional fuels will also be sold overseas.

This would mean the UK would have to continue to import oil and gas and be exposed to price fluctuations and be reliant on countries like Russia.

Other organisations have also criticised the decision, saying that the only way to ensure the UK meets its climate commitments is to transition to a low-carbon economy. To achieve this investment in domestic renewable energy is needed.

The UK is at a crossroads, where it has to decide if it wants a Government who transforms the economy into a green economy or one that continues to grant new North Sea licences.

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