New guidance provides clarity on how the global environmental impacts of proposed oil and gas projects in licensed fields should be assessed, following Supreme Court ruling.
Offshore developers will now be able to submit their applications for consent to develop already-licensed oil and gas fields.
Follows the Spending Review announcement of £9.4 billion for carbon capture and storage projects, including Acorn in Aberdeenshire, in a major step forward for the government’s plan to put the North Sea at the heart of Britain’s clean energy future.
Offshore oil and gas developers to benefit from greater clarity and stability, as new guidance responds to last year’s landmark Supreme Court ruling for the North Sea.
The government has acted decisively to respond to the independent Supreme Court, which ruled before this government took office that the global environmental effects of burning oil and gas are an inevitable consequence of extraction projects. This ruling means that North Sea operators for the first time are required to consider the impact of burning the extracted oil and gas in environmental impact assessments.
The new guidance, published today (19 June), will ensure the full effects of fossil fuel extraction on the environment are recognised in consenting decisions. It sets out how environmental impacts of oil and gas should be assessed, providing a clear way forward for the industry.
Offshore developers will now be able to submit their applications for consent to extract oil and gas in already-licensed fields, a process which has been on pause since the Finch Supreme Court judgment. When deciding on an application, the Energy Secretary will consider the significance of a project’s environmental impact, while taking into account and balancing relevant factors on a case-by-case basis – such as the potential economic impact and other implications of the project.
The publication brings greater clarity for Britain’s oil and gas sector, as the government continues its work with the industry to build a clean energy future for the North Sea. It comes as last week’s Spending Review confirmed £9.4 billion for carbon capture and storage projects – marking a major step forward in the government’s mission to make the UK a clean energy superpower that will drive economic growth, create jobs and deliver the government’s Plan for Change.
Energy Minister Michael Shanks said:
This new guidance offers clarity on the way forward for the North Sea oil and gas industry, following last year’s Supreme Court ruling.
It marks a step forward in ensuring the full implications of oil and gas extraction are considered for potential projects and that we ensure a managed, prosperous, and orderly transition to the North Sea’s clean energy future, in line with the science.
We are working with industry, trade unions, local communities and environmental…
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