The UK government has announced the introduction of the Energy Independence Bill, which aims to prohibit the granting of new licences for oil and gas exploration in the North Sea.
The proposed legislation, introduced by UK Energy Secretary Miatta Fahnbulleh, would remove the North Sea Transition Authority’s (NSTA) ability to grant new oil and gas licences.
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This would establish a legal ban on new exploration projects, building on the moratorium set by Ed Miliband during his time as energy secretary, reported The Independent.
The decision follows British Labour Party’s 2024 manifesto pledge to stop issuing new licences for oil and gas fields and is part of the government’s stated effort to address global warming and transition to clean energy.
UK Prime Minister Andy Burnham said: “This bill will make the changes needed for the long-term: protecting people when energy companies let them down, giving communities a stake in the power produced on their doorstep, and building more cheap, green power here at home.
“Together, these changes will bring bills down for good, give families greater security and put Britain back in control of its energy future.”
The legislation, if passed, would make reversing the ban on new drilling more difficult, requiring a parliamentary majority to repeal it.
However, it will not affect previously approved fields such as Rosebank, west of Shetland, or the Jackdaw gas field near Aberdeen.
Both projects were licensed prior to the bill’s introduction and have recently faced legal and public scrutiny.
Located about 80 miles north-west of Shetland, Rosebank is estimated to contain between 300 to 500 million barrels (mbbl) of oil.
In addition to the licensing ban, the bill includes provisions to introduce Transitional Energy Certificates, which the government claims could enable existing fields to produce approximately 60mbbl of oil and create hundreds of jobs, reported the BBC.
It also proposes the formal removal of standing charges from household gas bills and includes reforms to speed up grid connections.
The government announced the creation of an energy wealth fund, seeded with £2bn ($2.68bn) from oil and gas tax revenues, to invest in renewable and low carbon projects.
These measures come as the NSTA’s statutory objectives are being updated to reflect new priorities, balancing economic, net zero, and transition goals, and aligning the authority’s legal and business names for clarity.
The proposals have drawn criticism from industry representatives and opposition politicians.
Shadow Energy Secretary Andrew Bowie described the bill to The Telegraph saying, “Labour’s so-called energy independence bill will only make Britain more dependent on oil and gas imports. Labour might as well hang a ‘closed for business’ sign over our North Sea.”
Aberdeen and Grampian Chamber of Commerce chief executive Russell Borthwick said it made “no sense” to reduce North Sea production.
