UK Bill Would End New Oil and Gas Licences in the North Sea
The UK government’s plan would close the door to new oil and gas exploration in the North Sea, while leaving the status of existing fields—and
The UK government’s plan would close the door to new oil and gas exploration in the North Sea, while leaving the status of existing fields—and a contested decision on the Rosebank project—outside the proposed ban. The shift is framed by Labour as a climate commitment, but the Conservatives say it risks worsening Britain’s economic and energy challenges.
The Energy Independence Bill would strip the North Sea Transition Authority of its power to issue new oil and gas licences. The proposal does not set out an effective date in the available details; it would need to pass at Westminster before becoming law.
Existing fields and Rosebank
The bill would not automatically halt production from fields that already hold licences. It would create Transitional Energy Certificates, allowing existing fields to pursue additional production in areas bordering or close to already licensed fields.
Rosebank, off Shetland, is also not covered by the proposed licensing change. The UK’s largest known untapped field was approved in 2022, before that decision faced legal challenges. The bill would not decide whether drilling there can proceed.
That distinction leaves the proposal focused on new licences rather than an immediate shutdown of existing operations. The material does not set out specific consequences for jobs, energy supply or emissions, so the impact on workers and consumers remains unclear.
Clash over energy policy
The government says the bill fulfils Labour’s 2024 manifesto pledge not to issue licences for new oil and gas fields and supports its commitment to reducing global warming.
The Conservatives called the legislation “dangerous.” They accused Labour ministers of being “totally oblivious” to the economic and energy threats facing the country.
The bill’s next step is consideration at Westminster. Its proposed certificates would still allow some expansion around existing licensed fields, while the ban would prevent the regulator from granting licences for new exploration.
