Overview

This bill aims to prohibit new licenses for oil and gas exploration and onshore hydraulic fracturing in the UK. It also mandates that the Oil and Gas Authority (OGA) prioritize achieving the UK's 2050 net-zero carbon target and develop strategies for phasing out fossil fuel use and transitioning to renewable energy.

Description

The bill makes several key amendments to the Petroleum Act 1998 and other relevant legislation:

• Prohibition of new licenses: The bill explicitly prohibits the granting of new licenses for searching, boring, and extracting petroleum, effectively ending new oil and gas exploration projects. It also prohibits new licenses for onshore hydraulic fracturing (fracking).
• Existing licenses: Existing licenses are valid for five years from the bill's enactment, after which the Secretary of State will review each license's compatibility with the net-zero carbon target and the OGA's transition strategy before granting an extension (up to a further 5 years).
• OGA's new objective: The OGA's primary objective is changed to meeting the UK's 2050 net-zero target set out in the Climate Change Act 2008.
• Transition strategy: The OGA is required to create and regularly revise a transition strategy. This strategy must outline the phasing out of petroleum and other fossil fuels by 2050, including transition plans for regions economically reliant on the petroleum industry. These plans must address job losses and transition to renewable energy, including long-term investment programmes, job training, relocation support, and salary/pension protection for workers. The strategy will also include recommendations for eliminating investment in foreign fossil fuel extraction.
• Parliamentary approval: Any draft strategy produced by the OGA requires approval from both Houses of Parliament.

Government Spending

The bill doesn't directly specify government spending figures. However, the transition plans mandated in the bill will likely involve significant government investment in retraining programs, infrastructure development in renewable energy sectors, and support for workers in affected regions. The exact cost will depend on the details of the transition strategy developed by the OGA.

Groups Affected

• Oil and gas industry workers: Potential job losses and the need for retraining and relocation. The bill aims to mitigate this through the OGA's transition plans.
• Oil and gas companies: Significant restrictions on future operations and potential financial losses.
• Communities reliant on the oil and gas industry: Potential economic disruption requiring support and development of alternative economic activities.
• Environmental groups: Likely to view the bill favorably as it supports the UK's climate change goals.
• Renewable energy sector: Likely to benefit from increased investment and job creation.

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