- Environmentalists are suing the British government for granting 31 oil and gas exploration licenses without considering the impact on marine life.
- The North Sea Transition Authority issued the licenses in May, despite the government’s commitment to moving away from fossil fuels and switching to renewable energy.
- The ban on the granting of exploration licences announced by the Starmer government could face legal action from companies that have already invested in successful exploration bids.
A marine conservation organization is suing the British government over 31 oil and gas exploration licenses granted to it by the previous government earlier this year.
Oceana UK claims issuing authorities failed to consider impact of exploration on marine life, Reuters reportedThe company is part of a group called the Ocean Alliance Against Offshore Drilling, which wrote to current Energy Secretary Ed Miliband asking him to drop the lawsuit.
“By dropping the case, the government can fulfill its promises to the public and send a clear signal of a move away from the previous administration’s continued reliance on fossil fuels,” the group said.
The British North Sea Transition Authority, formerly the Oil and Gas Authority, issued 31 exploration licences in May as the Sunak government sought to balance energy security with the energy transition that required an end to oil and gas production, supporters said.
The licenses are expected to add an estimated 600 million barrels of oil equivalent by 2060 and 545 million barrels of oil equivalent by 2050. Interestingly, some of the licenses awarded in May fell in areas previously earmarked for offshore wind licenses.
“Following discussions with our partners The Crown Estate and Crown Estate Scotland, we have introduced a new clause for the first time for the overlap of oil and gas licences and wind leases,” the NSTA said.
However, when the Starmer government came into office, it quickly went on the offensive against the oil and gas industry, after promising to further increase taxes and end exploration licenses. The ban has not yet been made official, but the media have reported that it is in progress.
This approach could also put the government in legal crosshairs, The Guardian reported More recently, this is another reason why companies might accuse Downing Street of spending heavily on successful exploration bids.
By Irina Slav for Oilprice.com
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