The government of the United Kingdom has committed to granting hundreds of new North Sea oil and gas licences to boost British energy independence and grow the economy.
Also read; President Bola Ahmed Tinubu’s Full Speech to Nigerians on 31st July 2023
Prime Minister Rishi Sunak made the announcement on Monday in Aberdeen Scotland, the hub of the UK’s oil and gas industry.
“We have all seen how (Russian President Vladimir) Putin has manipulated energy, disrupting supplies and stalling growth in countries around the world,” Sunak said in a statement.
Announcing a decision to grant at least a hundred new licenses puts Sunak in direct opposition to the Labour Party, which is expected to lead in next year’s general election and wants to put an end to oil and gas development in the North Sea.
The British government also announced Monday it will invest in two new carbon capture and storage projects, one in northeast Scotland, the other in England.
They say these projects will create tens of thousands of jobs and help the UK reach its carbon-neutral goals.
The Government and the North Sea Transition Authority (NSTA) announced a joint commitment to undertake future licensing rounds, which they say will continue to be subject to a climate compatibility test.
In a press release by the Prime Minister’s Office, the government stated that it is taking steps to slow the rapid decline in domestic production of oil and gas, which will secure the country’s domestic energy supply and reduce its reliance on hostile states.
The NSTA – responsible for regulating the oil, gas and carbon storage industries – is currently running the 33rd offshore oil and gas licensing round. They expect the first of the new licences to be awarded in the autumn, with the round expected to award over 100 licences in total.
Sunak’s latest plans have already been strongly criticised by opposition politicians and environmental campaigners, who branded Monday’s move as “greenwashing” and a “smokescreen”.
The Scottish National Party leader in Westminster Stephen Flynn told the BBC that any new licenses should have an “evidence-based” approach that considers the climate and energy security – considering the rise in oil and gas prices in recent years.
Flynn also said “the looming climate catastrophe” must be considered too.
Sunak however point out that even when the UK reaches its carbon-neutral target in 2050, a quarter of its energy needs will still come from oil and gas.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
