Overview

This bill aims to halt petroleum extraction and onshore hydraulic fracturing in the UK, shifting the Oil and Gas Authority's (OGA) focus to meeting the UK's 2050 carbon reduction targets. It mandates the OGA to create strategies for phasing out fossil fuels and transitioning to renewable energies, including support for affected workers and regions.

Description

The bill makes several key amendments to the Petroleum Act 1998:

• Prohibition of Licensing: It prohibits the granting of new licenses for searching, boring for, and extracting petroleum, and for onshore hydraulic fracturing.
• Existing Licenses: Existing licenses are valid for five years, after which the Secretary of State will review their compatibility with the new principal objective and OGA strategy before granting extensions.
• Amended OGA Objective: The OGA's principal objective is changed to achieving the UK's net-zero carbon target for 2050 (as per the Climate Change Act 2008).
• OGA Strategy: The OGA must create and parliament-approve a strategy within one year, including plans to phase out petroleum and other fossil fuels by 2050, a transition plan for petroleum-dependent regions (with provisions for worker retraining, relocation, and financial support), and recommendations for eliminating investment in foreign fossil fuel extraction.
• Consultation: The OGA must consult various stakeholders, including governments of different UK nations, trade unions, environmental groups, and industry representatives, when developing its strategy.

Government Spending

The bill doesn't specify exact figures for government spending. However, significant costs are anticipated related to the transition plan for affected regions and workers, including retraining programs, relocation assistance, and potential support for impacted businesses. The overall fiscal impact will depend on the specifics of the OGA's transition strategy and the scale of the required support.

Groups Affected

• Oil and Gas Industry Workers: Potential job losses and the need for retraining and relocation assistance.
• Oil and Gas Companies: Significant impact on their operations and potential loss of future revenue streams.
• Communities Dependent on the Oil and Gas Industry: Economic disruption and the need for diversification and new employment opportunities.
• Environmental Groups: Likely positive impact due to the reduction in fossil fuel extraction and contribution to carbon reduction goals.
• Renewable Energy Sector: Potential for growth and job creation as a result of the transition.
• UK Government: Increased responsibility for managing the transition and associated costs.

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