Government Greenlights Carbon Capture Projects, but Critics Question Real Impact on Climate Goals

The Prime Minister’s recent statements have emphasized the importance of bolstering energy security and achieving energy independence in the UK.


Despite ambitious plans to reach net zero emissions by 2050, the government recognizes that a significant portion of the country’s energy needs will still come from oil and gas.

As a response to the ongoing global energy challenges, the UK government has announced its intention to undertake future licensing rounds for North Sea oil and gas projects, aiming to maximize domestic resources to ensure a secure supply and reduce reliance on imports from “hostile states.”

The Government’s Announcement:

The recent announcement primarily involves committing to future licensing rounds for North Sea oil and gas projects.

However, it did not specify decisions on particular oil fields such as Rosebank and Cambo projects, resulting in limited immediate practical changes.


Instead, the announcement highlights the differing stances between the ruling Conservative party and the opposition Labour party, which has pledged not to issue new licenses for oil and gas production if they come into power.

Alongside this, the government has approved two new carbon capture, usage, and storage (CCUS) projects in Scotland and the Humber, aiming for their completion by 2030.

Rationale for New Licenses:

The UK government recognizes that oil and gas will continue to play a part in the country’s energy mix, even after achieving net zero by 2050.

Utilizing North Sea resources is seen as a more secure source of supply compared to imports from “hostile states.”

Although the UK currently imports about half of its natural gas needs, primarily from Norway with contributions from Qatar, the United States, and previously Russia, the government argues that domestic fossil fuel production will be more cost-effective and environmentally friendly, generating around 75% fewer carbon emissions than imported alternatives.


Impact on Energy Prices:

The effects of new licenses on oil and gas production and their subsequent impact on energy prices remain uncertain.

Until the government reveals the locations of the new licenses, the extent of oil and gas production cannot be determined.

Additionally, the time frame for exploratory drilling and commercial production can span several years.

Experts suggest that even substantial discoveries may not significantly affect household energy bills, as energy prices are closely tied to the European price of oil and gas.

Enhancing Energy Security:

Allowing additional production in UK waters would likely displace some of the imported gas, thereby improving energy security.


However, experts stress that reducing demand for oil and gas is equally crucial in reducing the country’s reliance on imported fossil fuels.

Driving down demand through sustainable practices will play a significant role in strengthening energy security.

Climate Impact of New Licenses:

Fossil-fuel production in the UK generates fewer emissions compared to many other regions, thanks to efforts to decarbonize the industry.

Domestic production also reduces emissions associated with transport costs linked to importing oil and gas.

However, experts emphasize the importance of reducing overall demand for fossil fuels.


The burning of fossil fuels is the primary source of CO2 emissions related to the industry, outweighing the emission savings achieved by replacing imports with domestically produced oil and gas.

Moreover, gas produced domestically still emits more carbon than gas imported from Norway, a major gas supplier to the UK.

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