Britain Urged to Follow Norway's Lead in Restarting North Sea Drilling Licences

The Norwegian government has reopened exploration licences in the North Sea, prompting opposition parties to urge Britain to follow suit. Britain previously paused new exploration, leading to a reliance on Norway for gas supplies. The Norwegian move aims to make it a "long-term supplier of oil and gas to Europe." The UK government is urged to rethink its ban on new oil and gas licences to boost the economy and create jobs.

The Norwegian government has announced the reopening of oil and gas exploration licences in the North Sea, a move aimed at securing the country's role as a long-term supplier of oil and gas to Europe [2]. This decision comes as Norway's energy minister, Terje Aasland, stated that the new licences would create jobs, drive investment, and sustain the country's technology-intensive oil and gas sector [2].

The UK, which previously paused new exploration, has been urged by opposition parties to follow suit. The Norwegian move has prompted calls for the UK to reconsider its ban on new oil and gas licences, which was implemented under Energy Secretary Ed Miliband last year [2]. The UK's current ban is expected to lead to the closure of around 180 of its 280 existing fields within the next five years [2].

Conservative shadow business secretary Andrew Griffith has criticized the UK's stance, labeling it as a missed economic opportunity. He called for both offshore and onshore shale gas drilling, and for the government to take equity stakes in new projects, similar to Norway's sovereign wealth fund model [2]. Industry body Offshore Energies UK has warned that Britain risks increasing its reliance on imports unless it backs domestic production [2].

The Norwegian government's decision to reopen exploration licences highlights the importance of the North Sea as a key energy hub. The UK's ban on new licences has led to a reliance on Norway for gas supplies, a situation that could be alleviated by a change in policy [2]. With oil prices currently hovering around $67 per barrel and Ofgem's household energy price cap at £1,720, the UK government's stance on energy exploration is under scrutiny [3].

While the Norwegian government's move is seen as a positive step, the UK's position remains contentious. The UK economy grew faster than expected in the second quarter, with GDP rising by 0.3% and output in June alone gaining 0.4%, despite challenges such as increased taxes and inflation-busting hikes to regulated prices [4]. However, the UK's reliance on imports for energy and the potential for job creation through exploration and development remain significant concerns.

The UK government must weigh the potential economic benefits of reopening exploration licences against the environmental and climate change implications. As Norway seeks to balance its oil and gas production with renewable growth, the UK is faced with a similar challenge. The decision to rethink the ban on new oil and gas licences will have significant implications for the UK's energy security and economic future.

References:
[1] https://seekingalpha.com/news/4485094-halliburton-awarded-north-sea-well-stimulation-contract-from-conocophillips
[2] https://bmmagazine.co.uk/in-business/norway-north-sea-drilling-licences-uk-ban/
[3] https://coinpedia.org/news/uk-oil-company-to-power-bitcoin-mining-with-natural-gas/
[4] https://www.businesstimes.com.sg/international/uk-economy-grew-faster-forecast-q2