Overview

This bill aims to prohibit new licenses for oil and gas exploration and onshore hydraulic fracturing in the UK. It also changes the Oil and Gas Authority's (OGA) main goal to meeting the UK's 2050 carbon reduction target, requiring the OGA to create strategies for phasing out fossil fuels and transitioning to renewable energy.

Description

The bill makes several key changes:

• Prohibition of New Licenses: The bill prohibits the granting of new licenses for searching, boring for, and extracting petroleum. It also bans new licenses for onshore hydraulic fracturing (fracking), except under specific circumstances.
• Existing Licenses: Existing licenses will be valid for five years from the bill's passing. After this period, the Secretary of State will review whether extending them aligns with the new carbon reduction objective and OGA's transition plan.
• OGA's New Objective: The OGA's primary goal is altered to achieving the UK's net-zero carbon emissions target by 2050 (as per the Climate Change Act 2008).
• OGA's Transition Strategy: The OGA must create a strategy within a year, including plans to phase out petroleum extraction and use by 2050 and a transition plan for regions economically dependent on the petroleum industry. This plan should include investment, retraining, and support for workers transitioning to renewable energy jobs and eliminating investment in foreign fossil fuel extraction. This strategy needs parliamentary approval.

Government Spending

The bill doesn't directly specify government spending figures. However, implementing the transition plan, including retraining programs, relocation support, and potential financial aid to affected regions and workers, will likely lead to increased government expenditure. Conversely, reduced revenue from oil and gas extraction could lower government income.

Groups Affected

• Oil and Gas Industry: The bill could lead to job losses in the oil and gas sector, requiring significant workforce retraining and relocation efforts. Companies involved in petroleum exploration and extraction will face significant limitations.
• Workers in the Oil and Gas Sector: Workers will likely need retraining and support to transition to jobs in renewable energy industries. Potential job losses and financial insecurity are concerns.
• Communities Dependent on Oil and Gas: Regions economically reliant on the oil and gas industry may face economic challenges during the transition, requiring significant government investment and support.
• Environmental Groups: These groups will likely view the bill positively as a significant step towards climate change mitigation.
• The Oil and Gas Authority (OGA): The OGA will have to significantly alter its operations and strategic focus.

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