Prime Minister Rishi Sunak confirmed on Monday that hundreds of new oil and gas licences will be granted in the UK.
In a statement, Mr. Sunak said: “We have all witnessed how Putin has manipulated and weaponised energy—disrupting supply and stalling growth in countries around the world.
“Now, more than ever, it’s vital that we bolster our energy security and capitalise on that independence to deliver more affordable, clean energy to British homes and businesses.”
This new public reliance on home-grown energy marks a significant political diversion from opposition leader Sir Keir Starmer, who has stated he does not intend to renew oil and gas contracts, should Labour gain power at the next election.
In a video on The Sun, Mr. Sunak directly criticised the opposition leader’s plan to ban new licences, stating his energy plan would, “make us ever more dependent on hostile states, like Russia.”
Energy Secretary Grant Shapps, wrote on Twitter in support of Mr. Sunak’s move, ridiculing Labour policy as synonymous with the disruptive eco-activist group Just Stop Oil.
He said: “Today we are saying no to @JustStop_Oil and their political wing the Labour Party [sic]. We will power ahead with new oil and gas because it’s in the best interests of the British people, of our economy and of our national security.”
Mr. Sunak defended his plans to allow traditional energy sources to continue, pointing out that, “Even when we’ve reached net zero in 2050, a quarter of our energy needs will come from oil and gas. But there are those who would rather that it come from hostile states than from the supplies we have here at home.”
“We’re choosing to power up Britain from Britain and invest in crucial industries such as carbon capture and storage, rather than depend on more carbon-intensive gas imports from overseas–which will support thousands of skilled jobs, unlock further opportunities for green technologies and grow the economy.”
Reacting to this move by the prime minister, CEO of Offshore Energies UK (OEUK) Dave Whitehouse told The Epoch Times via email: “Domestic production is the best pathway to net zero and the UK Government’s commitment to licences is [sic] welcome boost for energy security and jobs. Oil and gas fields decline naturally over time. The UK needs the churn of new licences to manage production decline in line with the maturing basin.”
He added, “There are currently 283 active oil and gas fields in the North Sea, by 2030 around 180 of those will have ceased production due to natural decline.
“If we do not manage to replace maturing oil and gas fields with new ones, the rate of production will decline much faster than we can replace them with low-carbon alternatives.”
This announcement from the prime minister comes as Sir Iain Duncan Smith MP made calls for the government to have “another look” at the 2030 ban on the sale of petrol and diesel vehicles. Speaking to Sky News, Sir Duncan Smith warned that the UK risks “simply becoming even more dependent on China.”
With pressure mounting to reconsider various parts of the net zero agenda, the government will be keen to ensure that proponents of green policy are not left questioning its commitment to the cause.
The second part of the prime minister’s announcement seeks to allay these concerns, as he committed to investing in green carbon capture schemes, which will include new sites in Scotland and Yorkshire.
Speaking to BBC Scotland, SNP Westminster leader Stephen Flynn welcomed the news of investment into the Acorn carbon capture project, in Aberdeenshire, but added that he was “frustrated” by “eighteen years of dither and delay.”
Further investment into similar projects has been called for, with Mr. Whitehouse saying “Developing our new carbon capture industry and its high-value jobs needs significant investment from our energy producing companies.”
PA Media contributed to this report
