Energy Independence: UK’s North Sea Licenses


Energy Independence: UK’s North Sea Licenses

UK's Commitment to Oil & Gas Licenses for Energy Independence

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In a move to bolster its energy independence, Britain has committed to granting hundreds of licenses for North Sea oil and gas extraction, which has drawn both praise and criticism. Prime Minister Rishi Sunak has confirmed plans for more than 100 licenses that received bids earlier this year, and he also hinted at the potential for hundreds of additional licenses in the future. However, this decision has raised concerns among environmental campaigners who advocate for a faster transition to renewable energy sources.

The Need for Energy Security

Despite the target to achieve net-zero emissions by 2050, Prime Minister Rishi Sunak highlighted that the country is still expected to rely on oil and gas for more than a quarter of its energy needs even after reaching the net-zero goal. This has raised concerns about the country’s energy security and reliance on imports, particularly from countries like Russia, which has previously used energy supplies as a geopolitical tool. Sunak argued that increasing domestic fossil fuel production would enhance energy security and reduce dependency on potentially volatile external sources.

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The Political Divide and Pragmatic Approach

The issue of reaching the net-zero target has become a contentious point of debate between the ruling Conservatives and the opposition Labour Party. With an election on the horizon, both parties hold differing views on the feasibility of meeting the target without significantly impacting household bills. Prime Minister Sunak advocated for a “pragmatic” approach to achieve the goal without burdening citizens with high costs.

Balancing Environmental Concerns

The decision to grant more licenses for oil and gas extraction has faced criticism from climate activists and green groups who argue that it contradicts the goal of achieving net-zero emissions. While the government contends that tapping into domestic supplies will have a smaller carbon footprint compared to importing liquefied natural gas, activists express concerns about increasing fossil fuel output, which is seen as incompatible with combating climate change.

Compliance with Environmental Targets

Prime Minister Sunak asserted that the newly issued licenses are in line with the government’s environmental targets. The North Sea Transition Authority (NSTA) regulator is currently evaluating 115 bids from producers for fields in the ongoing licensing round that closed in January. The expectation is that the first of the new licenses will be awarded in the autumn.

Emphasis on Carbon Capture and Storage (CCS) Clusters

To offset the environmental impact of increased fossil fuel production, the government also announced support for two carbon capture and storage (CCS) clusters in Scotland and northern England. CCS technology involves capturing carbon emissions from industrial sources and storing them underground to prevent their release into the atmosphere. These projects aim to store 20 to 30 million tonnes of CO2 by 2030.

Challenges and Criticisms

Despite the government’s efforts to promote CCS technology, critics argue that it won’t capture all the carbon pollution caused by burning fossil fuels. They maintain that a more significant emphasis should be placed on transitioning to renewable energy sources instead.

Welcomed by Energy Companies

Energy companies, including Shell and Harbour Energy, welcomed the government’s commitment to CCS projects. These companies are involved in the Acorn CCS project, which will gain “Track 2” status, allowing them to enter into commercial negotiations with the government. Similarly, Harbour’s Viking CCS project to store CO2 in depleted gas fields has also received Track 2 status.

Seeking Predictability and Certainty in Taxation

The government also launched a call for evidence to collect views on taxes in the oil and gas sector. The goal is to design a long-term fiscal regime that provides predictability and certainty to the industry. The imposition of a windfall tax last year, when energy prices surged, led to a total tax rate of 75% on oil and gas producers. This, in turn, prompted some companies to reduce investment in the basin or opt out of the ongoing licensing round. The government has since adjusted the tax, stating that it will be scrapped if prices fall to normal levels for an extended period.


Britain’s commitment to granting hundreds of North Sea oil and gas licenses reflects its efforts to secure energy independence and reduce reliance on foreign suppliers, particularly in light of geopolitical concerns. However, this decision has sparked debates and opposition from environmental campaigners who advocate for a faster transition to renewable energy sources. The government’s support for carbon capture and storage projects aims to balance the impact of fossil fuel production on the environment, but it still faces criticisms from those who argue for more aggressive climate action.


  1. Q: How many licenses for North Sea oil and gas extraction has Britain committed to granting? A: Britain has committed to granting hundreds of licenses for North Sea oil and gas extraction.
  2. Q: What is the target year for achieving net-zero emissions in Britain? A: Britain aims to achieve net-zero emissions by 2050.
  3. Q: How much of Britain’s energy is expected to come from oil and gas even after reaching the net-zero goal? A: Even after reaching the net-zero goal, Britain is expected to get more than a quarter of its energy from oil and gas.
  4. Q: What is the purpose of carbon capture and storage (CCS) projects in Scotland and northern England? A: The CCS projects aim to capture and store carbon emissions from industrial sources to reduce their impact on the environment.
  5. Q: How much CO2 does Britain aim to store through CCS technology by 2030? A: Britain aims to store 20 to 30 million tonnes of CO2 by 2030 through CCS technology.


  • comment-avatar
    Carmen 4 months ago

    Want it or not, we’re stuck with oil and gas for the foreseeable future. All countries should strive to get away from these in 20-40+ years but we must not forget we still need them and will need them for years to come.

    • comment-avatar

      A lot of people keep forgetting this fact. Most of us want cleaner energy but we can’t just clap our hands and make it happen. It doesn’t work like that. It takes decades to change something so ingrained in our day to day lives.

  • comment-avatar
    Morgan 4 months ago

    Britain’s energy independence from the likes of Russia (and others) is and should be a priority. They must also do their best to fight climate change by transitioning to cleaner energy but oil and gas won’t just go away anytime soon.

  • comment-avatar
    Laura 4 months ago

    This was predictable. More countries will do the same because there is no other way to move forward. The infrastructure is not yet there for us all to create and consume just green energy. Not yet. We must make steps towards it but not fool ourselves into thinking it will happen overnight.