Britain will offer up scores more licences for companies to drill for oil and gas in the North Sea, in a move the government says will boost energy security.
“Hundreds” of new licences will be granted in the UK in future competition rounds in a bid to ensure “domestic energy supply and reduce reliance on hostile states,” the government said on Monday.
These will be in addition to the ongoing 33rd licensing round, which is anticipated to see North Sea companies collectively awarded over 100 drilling permits from autumn.
According to the government, the new licences will aim to slow a fall in domestic supply to the UK “rather than increase it,” with piped North Sea fuel also said to have a far smaller carbon footprint than imported liquified gas.
Two further carbon capture projects in Scotland and the Humber were also greenlighted by the government on Monday morning, with captured emissions from the now four selected industrial clusters ultimately set to be stored in depleted North Sea oil and gas fields.
Climate groups have previously slated the government’s continued backing for oil and gas, with a host of lawsuits claiming new projects are illegal in light of Britain’s net-zero targets.
Greenpeace is among those already suing the government, alleging ministers have not considered the emissions set to be released from burning the newly produced fuels.
“Relying on fossil fuels is terrible for our energy security, the cost of living, and the climate,” Greenpeace said on Monday.
“Rishi Sunak knows that any oil and gas from the North Sea will just be sold on the international market, making oil companies even richer at the expense of the rest of us.”
However, the prime minister stressed the need for bolstered energy security, adding that the 2050 targets still rely on a quarter of the UK’s energy coming from oil and gas.
Shares in North Sea firms Harbour Energy PLC (LSE:HBR) and Ithaca Energy PLC (LSE:ITH) rose following the news, climbing 3.9% and 7.3% respectively.