Upstream activity will not stop in the UK North Sea
UKCS licensing set to continue
The country’s North Sea Transition Deal will apply new conditions to future drilling permits but allow oil and gas activity to proceed
The London government plans to introduce a new climate compatibility checkpoint before any future UK continental shelf (UKCS) oil and gas licensing rounds “to ensure licences awarded are aligned with wider climate objectives, including net-zero emissions by 2050”, as part of its North Sea Transition Deal announced on Wednesday. The checkpoint “will use the latest evidence, looking at domestic demand for oil and gas, the sector’s projected production levels, the increasing prevalence of clean technologies such as offshore wind and carbon capture, and the sector’s continued progress against its ambitious emissions reduction targets”. But, crucially, E&P will continue. “As long as oil
Also in this section
12 December 2025
The latest edition of our annual Outlook publication, titled 'The shape of energy to come: Creating unique pathways and managing shifting alliances', is available now
12 December 2025
The federal government is working with Alberta to improve the country’s access to Asian markets and reduce dependence on the US, but there are challenges to their plans
11 December 2025
The removal of the ban on oil and gas exploration and an overhaul of the system sends all the right messages for energy security, affordability and sustainability
10 December 2025
The economic and environmental cost of the seven-year exploration ban will be felt long after its removal
