The British government intends to issue at least a hundred new licenses for North Sea oil and gas exploration and production.
Prime Minister Rishi Sunak confirmed the plan, which drew bids earlier this year, and indicated hundreds more might be issued in the future.
The licensing process, which will be governed by the North Sea Transition Authority, will be more flexible, allowing businesses to drill near currently licensed regions.
In addition, he announced further funding for two carbon capture and storage (CCS) clusters in Scotland and northern England.
They claim that these projects will generate tens of thousands of jobs and assist the UK in meeting its carbon-neutral targets.
Energy security
The Conservative government said it seeks to increase energy security and bring affordable and clean energy to British people.
This move will also lessen energy reliance on other countries, such as Russia.
"We have all witnessed how (Russian President Vladimir) Putin has manipulated and weaponized energy... Now more than ever, it's vital that we bolster our energy security," he said in a statement, as quoted by Reuters.
The North Sea Transition Authority regulator hopes that the first new licenses will be given in the autumn. It is still reviewing 115 producer proposals for fields in the latest licensing phase, which ended in January.
The plans were welcomed by energy corporations such as Shell (SHEL.L) and Harbour Energy (HBR.L), who are partners in the Acorn CCS project, which will obtain Track 2 status and will be able to enter into commercial negotiations with the government.
"[The project] is a central part of plans to decarbonize North Sea operations, and to store emissions from other parts of Scottish industry," said Roddy, senior vice president of Shell UK's exploration and production business, as reported by CNN.
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Climate advocates criticize the move of UK
Climate advocates opposed the move of the UK government, saying that this would increase the impact of climate change.
"Granting hundreds of new oil and gas licenses will simply pour more fuel on the flames, while doing nothing for energy security as these fossil fuels will be sold on international markets and not reserved for UK use," said Mike Childs, the head of policy for Friends of the Earth, as reported by The Guardian.
Lyndsay Walsh, a climate policy adviser at Oxfam, believes that extracting fossil fuel from the North Sea would "send a wrecking ball through the UK's climate commitments."
The BBC reported that the Prime Minister stressed that the government is committed to attaining the 2050 net zero target in a "pragmatic and proportionate manner," but without adding unnecessary fees and burdens to households.
Net zero signifies that no more greenhouse gases are added to the climate.
Sunak's announcement places his Conservative administration against the opposition Labour Party, which has called for a ban on all new oil and gas projects in the North Sea as well as increased investment in the country's renewable energy industry.
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