|
Listen now
|
Britain prime minister Rishi Sunak pledged to issue hundreds of new licences for oil and gas production in the North Sea.
The move seems to be part of a push to boost Britain’s energy independence while attempting to create political dividing lines with the poll-leading opposition Labour Party.
The decision is about “strengthening our energy security,” Mr Sunak said. “We’re still heavily impacted by what happens when energy supplies are weaponised by dictators.” Energy and climate policies have risen up the political agenda following Russia’s invasion of Ukraine and a cost-of-living crisis, which has fuelled concerns that green policies can hurt household finances.
Critics have warned that the UK has failed to invest enough to beef up energy security as other countries, such as the US, pump money into green technology. But Mr Sunak’s Conservative Party also sees energy and climate change as areas to try to score points against Labour leader Keir Starmer.
The Tories interpret their narrow victory in a special election in northwest London this month — in large part due to local opposition to new charges for vehicles falling below emissions standards — as a sign that scepticism about green policies is potentially fertile ground ahead of a general election expected next year.
At the same time, Mr Sunak is wary of doing too much to alienate more moderate voters who prioritise efforts to protect the environment and tackle climate change.
Monday’s statement tried to strike that balance — the promise of more oil and gas licenses, coupled with support for two new carbon capture projects in Scotland and northern England and a restatement of the government’s commitment to reach net-zero carbon emissions by 2050.
Boosting domestic production will help the shift toward net-zero, because oil and gas will still provide for about a quarter of Britain’s energy needs when that milestone is reached, Mr Sunak said. “It makes no sense not to use the resources we have at home,” he said. “There’s no point in importing stuff from halfway around the world.”
In a statement, the government said the first new licences would be issued in the autumn, with over 100 expected in total in the current licensing round. It suggested a commitment to future licensing rounds — though that would likely hinge on Mr Sunak’s party holding on to power.
Labour has said it will respect licences already granted but not give out any new ones.
Given the work involved, it’s likely that projects licensed in the current round could end up coming online just a few years before the 2050 net-zero deadline. UK oil and gas production peaked about 20 years ago and has been in near-constant decline since.