The UK government said Thursday it will review its offshore oil and gas licensing policy as part of its strategy to achieve net zero emissions by 2050, Kallanish Energy reports.
The review will provide necessary information for future plans for oil and gas production in line with reducing emissions to meet the net zero target. Its initial findings and next steps will be published in an upcoming energy white paper, the government said in a statement.
Although the UK generates over half of its electricity through renewable wind and solar sources, demand for oil and gas for commercial and industrial purposes will continue “over the coming decades as the UK transitions to low carbon solutions.”
The country’s oil and gas sector currently supports 270,000 jobs and has provided the government income of £330 ($437.3) billion through product taxation at today’s prices. The UK O&G infrastructure also provides a “key role” in developing green technologies, such as hydrogen power and carbon capture and storage.
“While we have decarbonized our economy faster than any other major country over the past two decades, the oil and gas sector will continue to be needed for the foreseeable future as we move toward net zero carbon emissions by 2050,” said Business and Energy Secretary, Alok Sharma.
“Our review into future oil and gas licensing rounds will ensure we are able to meet our net zero target, while protecting jobs across the country as part of our plan to build back better with a greener, cleaner economy,” he said.
Earlier this week the UK’s Oil and Gas Authority announced it had opened discussions on methods of reducing greenhouse gas emissions in the North Sea, including platform electrification. (See related article)
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