Projects

The UK government is undertaking to transition the North Sea from oil and gas production to clean energy generation to ensure that it provides the future jobs, investment and energy that this country needs, and respects safe climate limits. To support the delivery of its commitment not to issue new oil and gas licences to explore new fields, the government has just announced a consultation on the future of the North Sea, designed to develop a plan to drive the development of the UK’s offshore clean energy industries, create good, long-term jobs, as well as growth and investment in communities across the North Sea.

The rules governing how potential new UK oil and gas projects are assessed are finally changing. Regulators must now consider the impact of burning the oil and gas extracted from a project. To be credible, the new rules must: 1. Rationally assess new UK oil and gas projects in the context of global climate limits 2. Count emissions from new oil and gas projects in their totality 3. Reject false proposals to mitigate combustion emissions.

Last week, the Scottish Court of Session ruled the approval of the Rosebank oil field unlawful. The decision has since sparked much speculation around the field’s future, including the government's position. One thing is clear – the rules for new oil and gas projects are changing. And Rosebank will need to pass multiple regulatory stages before being considered by the Energy Secretary. Neither Rosebank’s owners nor the government can pre-empt the outcome of this process.