The UK government is introducing new licensing opportunities for oil and gas production in the North Sea to support the country's transition to net zero emissions [ecba30bd]. The North Sea Transition Authority (NSTA) will invite applications for new production licenses on an annual basis, providing certainty to investors and industry. The move aims to reduce the UK's reliance on imports from hostile foreign regimes and bolster energy security. Encouraging domestic gas production will result in lower carbon fuels for the UK and benefit families and businesses. Each licensing round will only take place if key tests are met, including the projection that the UK will import more oil and gas than it produces domestically. The government believes that domestic production from new fields in the North Sea can be cleaner than production from older fields, reducing emissions impact. The move is expected to unlock green investment and drive investment in clean technologies. The government emphasizes the importance of using homegrown resources, such as oil, gas, wind, and hydrogen, to ensure energy security and support the transition to clean energy [ecba30bd].
The oil and gas industry currently supports over 200,000 jobs and contributes £16 billion to the UK economy annually. The UK is committed to achieving net zero emissions by 2050 and has achieved the fastest rate of greenhouse gas emissions reductions among G7 countries. The country is scaling up renewable energy supplies, including wind, solar, and nuclear power [ecba30bd].
Meanwhile, in New Zealand, the government plans to reverse a five-year-old ban on new oil and gas exploration. A bill to be introduced this year would end the ban that has only allowed exploration for new petroleum on some onshore fields in the country's North Island. Resources Minister Shane Jones claimed the ban had stymied international investment and left the country's known gas fields undeveloped [947a214d]. The ban reversal aims to attract international investment and rebuild investor confidence in the petroleum sector. The government plans to ease how petroleum exploration applications are tendered [947a214d].
The decision to reverse the ban is part of the government's efforts to transition to a low-carbon economy and reduce greenhouse gas emissions. The current government believes that ending the ban will help support economic growth and job creation in the energy sector. However, the move has received mixed reactions, with environmental groups expressing disappointment and concern about the impact on climate change, while industry groups welcome the decision as a positive step for the economy. Greens co-leader Chloe Swarbrick criticized the government's decision, stating that it goes against prioritizing clean energy [947a214d]. The change in policy is expected to take effect immediately [c4faa566].
These developments in both the UK and New Zealand highlight the complexities and differing approaches to oil and gas exploration and production as countries navigate the transition to cleaner energy sources.