The UK moves to legally ban new North Sea oil and gas licences

The UK government has announced the introduction of the Energy Independence Bill, which seeks to prohibit the issuance of new licences for oil and gas exploration in the North Sea, while supporting continued production from existing licensed areas. The proposed legislation, introduced by the UK Energy Secretary, would strip the North Sea Transition Authority (NSTA) of its power to issue new oil and gas licences, establishing a statutory ban on new exploration projects. The measure would formalise the moratorium introduced by the government in 2025 to stop issuing new licences for oil and gas fields and forms part of the government's stated strategy to tackle global warming and accelerate the transition to clean energy. 

However, the proposed ban would not apply to projects that have already received approval, including the Rosebank field, west of Shetland, and the Jackdaw gas field, near Aberdeen, which was recently approved by the government. At peak production, Jackdaw is expected to increase domestic gas output by approximately 6%, helping maintain the UK's gas supply throughout the field's operational lifespan of up to 11 years. Its approval is consistent with the government's manifesto commitment, as the Jackdaw field already held an existing licence (KEI, 22/10/2026).

From 2019 to 2024, UK crude oil production declined by 10%/year but increased by 2% in 2025 to 31 Mt. Gas production has decreased by 8%/year on average since 2022, reaching 32 bcm in 2025. Previously, it decreased by 70% from a peak at 115 bcm in 2000 to 40 bcm in 2013 and was was relatively stable until 2020 (Enerdata Global Energy Research).

In addition, the Energy Independence Bill will implement manifesto commitments to end new coal licensing and ban fracking, increase system resilience by strengthening powers relating to the midstream gas sector and the LPG supply chain, reducing the risk of supply disruptions to consumers and the wider economy, and reform market, planning and regulatory frameworks to accelerate the deployment of clean power including offshore wind, hydrogen and smart grid technologies. Other measures are aimed at reducing energy bills for British households. The bill aims to shift 75% of domestic Renewables Obligation costs from energy bills to public spending on a lasting legal footing; new amendments should be adopted to scrap standing charges on household gas bills, ending the daily charge paid even when no gas is used. It will also empower local communities, which will get a greater stake in clean energy projects.