The UK government has moved to ban new oil and gas exploration licences in the North Sea, saying it is upholding Labour's manifesto pledge. The Energy Independence Bill would remove the North Sea Transition Authority's ability to grant new licences but would not affect the decision on whether to allow drilling at Rosebank off Shetland. Prime Minister Andy Burnham said the changes would "bring bills down for good" and put Britain back in control of its energy future.
The Energy Independence Bill, if passed, would also introduce Transitional Energy Certificates allowing additional production from areas bordering or in close proximity to existing fields, which the government says could yield about 60 million barrels of oil and support hundreds of jobs. The bill would formally scrap gas standing charges and introduce grid connection reforms. A new energy wealth fund, initially funded with £2bn from oil and gas tax revenues, will invest in renewable and low-carbon projects.
The bill comes two weeks after the government approved production from the Jackdaw gas field off Aberdeen, a decision criticised by environmental groups. The Rosebank field, the UK's largest known untapped oil field with an estimated 300 to 500 million barrels, was approved in 2022 but remains subject to legal challenges. Ministers have yet to decide its fate.
Energy Secretary Miatta Fahnbulleh said the bill would "build a clean energy future which people feel in their pockets, households and communities".
Shadow Energy Secretary Andrew Bowie, Conservative MP for West Aberdeenshire and Kincardine, called Labour ministers "utterly delusional" and accused them of being "totally oblivious" to the "economic and energy threats this country faces". He said they might as well "hang a closed for business sign over Aberdeen and the North Sea".
Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, argued it made "no sense" to wind down North Sea production, adding that Britain would continue to need oil and gas for decades and should produce it domestically rather than relying on imports. David Whitehouse, chief executive of Offshore Energies UK, noted Britain imports more than 40% of the energy it needs, leaving households exposed in an increasingly volatile world.
Greenpeace UK called the bill a "positive step forward for the clean energy transition" but urged the government to reject Rosebank. Head of politics Amy McCarthy said saying no to Rosebank, a project that would "annihilate every single climate or cost-of-living benefit achieved through this bill", must be "step one" to securing power and protecting lives.
Scotland's First Minister John Swinney has not given a definitive position on Rosebank, stating at Holyrood that carbon emissions from an individual site must be assessed for compatibility with net zero.
Analysis
Why This Matters
- The bill marks a significant shift in UK energy policy, ending new exploration in the North Sea after decades of production.
- It directly affects jobs and investment in Scotland's north-east, where the oil and gas industry is a major employer.
- The decision on Rosebank remains a flashpoint between climate goals and energy security.
Background
The UK government under Labour has committed to net zero emissions and promised in its 2024 manifesto not to issue new oil and gas licences. The previous Conservative government approved both Jackdaw and Rosebank. Environmental groups have challenged Rosebank in court, leaving Labour ministers to decide its fate.
Key Perspectives
UK government: says the bill will lower bills, improve energy security, and support the transition to clean energy.
Conservatives: call the policy dangerous and oblivious to economic and energy threats.
Aberdeen and Grampian Chamber of Commerce: argues winding down North Sea production makes no sense when Britain still needs oil and gas.
Offshore Energies UK: warns that relying on imports leaves the country exposed.
Greenpeace UK: welcomes the bill but demands rejection of Rosebank.
First Minister John Swinney: says Rosebank must be assessed for compatibility with net zero.
What to Watch
- The government's final decision on the Rosebank oil field, expected in coming months.
- Legal challenges from environmental groups to the Jackdaw approval or potential Rosebank approval.
- Impact on investment and jobs in Scotland's north-east as the transition proceeds.
Checked
11 claims in this story checked against 1 source: 10 supported.
Show each claim
- SupportedThe UK government has moved to ban new North Sea oil and gas exploration.BBC Scotland: “The UK government has moved to ban any new exploration for oil and gas in the North Sea.”
- SupportedAndrew Bowie called Labour ministers “utterly delusional”.BBC Scotland: “Shadow Energy Secretary Andrew Bowie, Tory MP for West Aberdeenshire and Kincardine, called Labour ministers "utterly delusional".”
- SupportedThe government said it was upholding Labour’s manifesto pledge not to issue new oil and gas field licences.BBC Scotland: “The UK government said it was upholding Labour's 2024 manifesto vow not to issue licences for new oil and gas fields”
- SupportedThe bill would remove the North Sea Transition Authority’s ability to grant new oil and gas licences.BBC Scotland: “The Energy Independence Bill would remove the North Sea Transition Authority's ability to grant new oil and gas licences.”
- SupportedThe bill would not affect the decision on whether to allow drilling at Rosebank off Shetland.BBC Scotland: “The legislation will not affect the decision on whether to allow drilling at Rosebank off Shetland”
- SupportedAndy Burnham said the changes would “bring bills down for good” and put Britain back in control of its energy future.BBC Scotland: “"Together, these changes will bring bills down for good, give families greater security and put Britain back in control of its energy future."”
- SupportedEnergy Secretary Miatta Fahnbulleh said the bill would “build a clean energy future which people feel in their pockets, households and communities”.BBC Scotland: “Energy Secretary Miatta Fahnbulleh said the bill would help to "build a clean energy future which people feel in their pockets, households and communities, ensuring support reaches those who need it most".”
- SupportedThe government says the bill’s Transitional Energy Certificates could yield about 60 million barrels of oil and support hundreds of jobs.BBC Scotland: “The government said the move could produce about 60 million barrels of oil and support hundreds of jobs.”
- SupportedThe energy wealth fund will initially have £2bn in funding from oil and gas tax revenue.BBC Scotland: “The UK government has also announced the establishment of an energy wealth fund using tax revenue from oil and gas extraction, with an initial £2bn of funding”
- SupportedThe Jackdaw approval came two weeks before the bill announcement.BBC Scotland: “It comes two weeks after the UK government approved production from the Jackdaw gas field in the North Sea.”
- Not in the sourcesMinisters have yet to decide Rosebank’s fate.BBC Scotland: “However, after being subject to legal challenges from environmental groups, Labour ministers have had to decide whether to continue with the projects.”
