The Labor government faces a legal dilemma in its plans to ban new North Sea oil exploration and gas before the latest licensing round for the industry closes.
After sweeping to power with a pledge that it would end the granting of new North Sea exploration licenses, the timing of the current licensing round has cast doubt on the party’s plans.
The new government must decide whether to cancel this process. If it does, it could grant a few new licences for the North Sea in violation of its promise to stop new oil and natural gas exploration.
The North Sea Transition Authority, an industry regulator, runs the North Sea Transition Authority. If the North Sea Transition Authority cancels the mechanism, it could expose the new government to a flurry of legal action from companies that may have spent millions preparing bids.
Before making a final decision about the live licensing round, it is expected that the government will seek legal advice to determine how to implement its North Sea Policy, without exposing itself to a legal challenge by oil and gas companies.
Tessa Khan is the executive director of Uplift. The campaign against fossil fuels said that it would be shocking if a newly-elected government did not follow through on its manifesto promise to stop North Sea developments.
She said: “People in this nation voted for change. Not more of the same ripoff energy system, where oil and gas corporations walk away with massive profits, and we’re left with rising bills, declining employment and an worsening climate crises.” “Finally we have a UK government who is willing to move to a fairer, better energy system.”
The trade unions also put pressure on ministers to protect millions of jobs that depend on the North Sea Industry while they shift to greener industries.
Labour’s manifesto stated that it would “ensure an a gradual and responsible” shift away from drilling offshore in the North Sea, which would recognize “the proud heritage of our offshore sector and the brilliance and dedication of its workforce”.
Labour’s promise to stop new North Sea drilling is central to its pledge to make Britain a superpower in clean energy. The party pledged to ban new oil and gas, while also doubling the capacity of onshore wind and solar power.
According to a government spokesperson, “We will not be issuing new licenses for the exploration of new fields. We will not also revoke any existing oil and natural gas licences. Instead, we will continue to manage the existing fields throughout their lifetime.
The government has denied reports that Ed Miliband (the energy secretary) had ordered an immediate ban on all new licenses, even those being considered by regulators.
The spokesperson stated that the Daily Telegraph report was “a complete fabrication” and “invents meeting and decisions which have not occurred”.
The spokesperson said, “We work with the North Sea Transition Authority in order to ensure an equitable and balanced transition for the North Sea.”
In the latest licensing round that began in autumn 2023, 76 oil companies submitted 115 bids for exploration work on 257 “blocks”, including the North Sea, Irish Sea, and East Atlantic.
Rishi Sunak, the May snap election’s organizer, had not yet received a decision by the NSTA on a few fields.
The NSTA stated that “A few applications are still being considered and a few others may be added at a future date.”
A spokesperson for NSTA declined comment on a previous statement made by the regulator. He said, “We follow policy directions set by the current government.”
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