The UK government released a new North Sea strategy on Nov. 26 that permits limited drilling in oil and gas fields with existing licences, while maintaining its pledge to issue no new licences. Energy Secretary Ed Miliband announced the plan after returning from the Cop30 climate conference in Brazil, where he promoted the UK’s commitment to align with 1.5C climate goals.
Limited Drilling Allowed Under New Rules
The strategy introduces transitional energy certificates that allow drilling on or near current production sites. These projects, known as tiebacks, will enable companies to extract small volumes of oil and gas from areas linked to existing fields. Officials say the approach supports the economic viability of ageing assets and ensures their full lifecycle management.
Environmental groups say the policy will produce relatively low levels of additional fossil fuel output. Tessa Khan, the executive director of Uplift, said the North Sea basin is in decline and that new licensing would not reverse job losses. She said the government should adopt a stronger transition plan for workers and halt development of new fields such as the Rosebank oilfield.
Data Shows Limited Reserves Near Existing Sites
Analysis by Uplift, using figures from the North Sea Transition Authority and Rystad, estimates that new discoveries within 30 miles of current sites hold about 25 million barrels of oil and another 20 million barrels of oil-equivalent gas. By comparison, the proposed Rosebank field could produce nearly 500 million barrels over its lifetime.
The government released the North Sea strategy alongside the autumn budget, which included several measures affecting transport and energy costs.
Budget Continues Fuel Duty Freeze
Chancellor Rachel Reeves said fuel duty will remain frozen until next September. The tax has not increased since 2010, despite a policy that called for a yearly rise of one penny plus inflation to encourage greener transport. The Social Market Foundation (SMF) estimates the prolonged freeze has reduced the tax’s real value and cost the government more than £130 billion.
Research from the SMF shows the freeze benefits higher-income households more than lower-income households, as wealthier families typically own larger cars. The organization also found that the policy has not encouraged significant shifts to electric vehicles or public transport. Domestic transport accounts for 28% of UK emissions, making it the country’s largest emitting sector.
New Ev Tax To Take Effect
The budget also introduces a 3p-per-mile tax on electric vehicles and plug-in hybrids. The rate will rise annually with inflation. An EV driver traveling about 8,500 miles a year will pay an estimated £255 in the first year, according to the Office for Budget Responsibility.
Colin Walker, the head of transport at the Energy and Climate Intelligence Unit, said changes to EV duty and sales requirements may send mixed signals. He said the measures could slow the shift away from petrol cars.
Green Levies To Move to General Taxation
Reeves also announced that green levies will shift from household energy bills to general taxation starting in April. The move will remove about £2.3 billion a year from bills for three years, reducing the average household bill by about £150 annually.
The change will be funded by ending the Energy Company Obligation (ECO) scheme, which supported energy-efficiency upgrades for the lowest-income households. Reeves said the program had been poorly implemented and, in some cases, cost households more than it saved.
Ami McCarthy, the head of politics at Greenpeace UK, said the shift of levies to general taxation will ease pressure on bill payers and provide a fairer way to fund long-term energy-saving initiatives.
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