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industry & Government news

UK STANDS BY OFFSHORE OIL AND

GAS LICENSING DESPITE RISING

TENSIONS OVER NET ZERO TARGETS

CALLS FOR A MORATORIUM ON FUTURE LICENSES HAVE ESCALATED

THE UK WILL still consider offering “We are not issuing any new licenses Climate criteria are expected to play
new offshore oil and gas licenses this year but we’re not saying absolutely an explicit role in licensing under a
in the future, says Energy Minister never,” Trevelyan told the Reuters ‘transition deal’ agreed with the oil
Anne-Marie Trevelyan, despite rising Global Energy Transition 2021 online industry in March and Trevelyan said
pressure on the country to ban new conference. “If there was a very good the UK is on track to set out its new
exploration in the wake of a landmark case, and there was a strong evidence framework for oil and gas upstream
report on global carbon emissions by base behind it, then we continue to say licensing by the end of the year.
the International Energy Agency. at this point that we will be willing to
S&P Global Platts reports that the consider new licensing, because as a
UK suspended North Sea licensing in government we have to make sure that
September 2020 to align the process we can ensure security of supply and a
with the country’s long-term climate stable transition.”
goals as it also prepares to host “We’ve set a very clear line of
United Nations COP 26 climate talks sight that we want to see an orderly
in November. The country, which still transition away from oil and gas, but
pumps about one million b/d from its accepting that we do still need it for
offshore fields, has pledged to become a some time to come. The oil and gas
net zero emitter by 2050. sector have been incredibly forward-
But calls for a moratorium on future leaning in this and... agreed to meet
UK exploration licenses have escalated really stringent reductions in their own
after the IEA said in May that no new oil emissions,” Trevelyan told the event.
and gas resources were needed under “We’re working with industry and many
a global pathway to achieving net zero specialists... to set out exactly what that
emissions by 2050. framework will look like.” ANNE-MARIE TREVELYAN

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