New legislation introduced for annual oil and gas licensing rounds
The UK government has introduced the Offshore Petroleum Licensing Bill to Parliament recently in aid of boosting the UK economy, energy security and transition to net zero.
The bill requires annual oil and gas licensing rounds which are subject to stringent new emissions and imports tests.
The implementation of a consistent licensing system for exploration is set to enhance predictability, instill trust in investors, and bolster the UK's energy self-sufficiency.
This fresh approach will be contingent upon satisfying two crucial criteria: firstly, that the UK is anticipated to continue being a net importer of oil and gas; and secondly, that the carbon emissions linked to the extraction of UK gas must be inferior to the average of comparable emissions from imported liquefied natural gas.