Overview

This bill aims to halt new petroleum and onshore hydraulic fracturing licenses in the UK, shifting the Oil and Gas Authority's (OGA) focus to achieving net-zero carbon emissions by 2050. It mandates the OGA to create strategies for phasing out petroleum, transitioning to renewable energy, and supporting affected workers and regions.

Description

The bill makes several key changes:

• Licensing Ban: It prohibits the granting of new licenses for petroleum exploration and extraction, including onshore hydraulic fracturing.
• OGA's New Objective: It amends the OGA's principal objective to meeting the UK's 2050 net-zero carbon target (Climate Change Act 2008).
• Transition Strategy: The OGA must develop and implement a strategy encompassing the phasing out of petroleum by 2050, a transition plan for petroleum-dependent regions (including worker support and investment in renewable energy), and recommendations on ending investment in foreign fossil fuel extraction.
• Existing Licenses: Existing licenses will be valid for five years, subject to a review by the Secretary of State to ensure compatibility with the new net-zero objective and the transition strategy.
• Parliamentary Approval: The OGA's strategy must be approved by both Houses of Parliament.

Government Spending

The bill doesn't specify direct government spending figures. However, implementing the transition plan outlined in the OGA's strategy will likely involve significant government investment in renewable energy infrastructure, worker retraining, and regional economic support for areas currently reliant on the petroleum industry.

Groups Affected

• Petroleum Industry Workers: Potential job losses and the need for retraining and support during the transition to renewable energy.
• Petroleum Companies: Restrictions on future operations and potential financial impacts.
• Renewable Energy Sector: Potential for job creation and increased investment.
• Communities Dependent on the Petroleum Industry: Need for economic diversification and support during the transition.
• Environmental Groups: Likely to see this as a positive step towards environmental protection.
• Oil and Gas Authority (OGA): Significant changes to its mandate and operational focus.

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