On 4 November, the UK government introduced a bill in Parliament that would end the issuance of new licenses for oil and gas exploration in the North Sea. At the same time, production on already licensed areas will continue, and existing projects will be provided with additional opportunities for developing reserves.
This was announced in an official statement by the British government. The new provisions are included in the Energy Independence Bill, presented on 4 November in the House of Commons.
The document provides for ending the issuance of new licenses for oil and gas exploration, but does not prohibit production on fields for which permissions have already been obtained.
Thus, existing oil and gas projects will be able to continue operating throughout the life of the fields. The government emphasizes that oil and gas will remain part of the country's energy mix for several more decades.
Authorities to Allow Additional Production at Existing Fields
To support the oil and gas industry, the government proposes introducing Transitional Energy Certificates (TEC).
They will allow companies to develop additional reserves in areas adjacent to already licensed fields, including using existing infrastructure.
According to the UK government's estimate, the new mechanism could provide production of about 60 million additional barrels of oil and preserve hundreds of jobs.
It is expected that this approach will extend the economically efficient operation of existing fields without issuing licenses for exploration of new areas in the North Sea.
The bill also provides for ending the issuance of new licenses for onshore oil and gas exploration in England, including permits that could be used for shale gas extraction by hydraulic fracturing.
UK Oil and Gas Production Has Declined Significantly
According to explanatory materials from the UK Department for Energy Security, oil and gas production in the North Sea continues to decline.
In 2025, production volumes were about 75% below the historical peaks reached in the late 1990s and early 2000s.
The government believes that issuing new licenses will not be able to halt the natural depletion of fields and will not change the UK's position as a net importer of oil and gas.
To support the transition of oil and gas regions to new industries, the authorities have provided an Energy Wealth Fund of £2 billion, as well as a special program to support employment for North Sea workers.
The Bill Provides for Changes to Energy Charges
In addition to oil and gas restrictions, the Energy Independence Bill contains measures to reform the energy market and protect consumers.
The government intends to create a legislative basis for abolishing the fixed daily gas charge, which UK households currently pay regardless of actual consumption.
According to the authorities' calculations, about 60% of gas consumers will be able to save an average of £45 per year.
It is also proposed to strengthen the powers of the energy regulator Ofgem, set stricter requirements for intermediaries in the energy market, and accelerate the connection of new facilities to the electricity grid.
At the same time, plans to limit oil and gas exploration are facing objections from industry representatives. They warn of possible job losses and increased UK dependence on energy imports.
As of 4 November, the bill has passed its first reading in the House of Commons and has not yet become law. For the new rules to come into force, the document must undergo further parliamentary procedures and receive royal assent.
