Boris Johnson is to announce plans to exploit new areas of the North Sea for oil and gas reserves for the first time in three years amid spiralling energy prices after Russia invaded Ukraine.
The prime minister announced yesterday that the government was drawing up proposals to intensify Britain’s energy self-reliance by boosting the deployment of renewable electricity and “using more of our own hydrocarbons” in the North Sea.
The Times understands that ministers are looking to announce the first new round of exploration licences in the region since 2019.
They are also looking for regulators to give the go-ahead to “field development plans” for up to six North Sea oil and gas projects, exploiting resources that were found years ago but which still need environmental and safety approval to begin production.
Green groups have campaigned for a moratorium on all new North sea oil and gas projects. Environmentalists say they are incompatible with Johnson’s net-zero target — something that the prime minister denies.
Advertisement
He told a press conference Britain would need to exploit more of its own oil and gas because it faces a “crunch” caused by the invasion of Ukraine.
However, Johnson rejected an American call for a ban on all Russian oil and gas. “There are different dependencies in different countries,” he said. “You can’t simply close down use of oil and gas overnight, even from Russia. That’s not something every country around the world can do.
“What we need to do is to make sure we’re all moving in the same direction. That’s what you’re going to see.”
His comments echoed those of Olaf Scholz, the German chancellor, who pushed back against calls from the US and Ukraine for a ban on imports of Russian gas and oil as part of international sanctions on Moscow.
Those calls had led to oil prices nearing the record highs of 2008, and gas prices surpassing the record high set only on Friday. At one stage yesterday gas prices reached £8 per therm, up from only about 40p a therm a year ago.
Advertisement
“Europe has deliberately exempted energy supplies from Russia from sanctions,” Scholz said. “At the moment, Europe’s supply of energy for heat generation, mobility, power supply and industry cannot be secured in any other way. It is therefore of essential importance for the provision of public services and the daily lives of our citizens.”
Oil and gas prices fell back slightly after Scholz’s intervention.
