Next week, in a speech in Aberdeen [Tuesday 2nd
September 2025], will call for our North Sea
Oil & Gas sectors to focus solely on maximum extraction, and
pledge to free the sector from unnecessary red tape.
will say that the next
Conservative government will change the mandates set on the North
Sea Authority, simplifying it to just one simple instruction:
“maximise the extraction of our oil and gas”. The existing
North Sea Transition Authority will be renamed as the North Sea
Authority.
This new mandate would replace all existing mandates that
currently are holding back the sector and damaging our economic
growth. The ONS have recently said that falling oil and gas
production is leading to weaker economic growth in the UK.
This would include ridding the industry of its current Net Zero
mandate, which requires it to take burdensome action to reduce
greenhouse gas emissions through electrification requirements,
restrictions on venting and flaring, and forcing producers to
focus on green developments such as carbon storage technologies.
It would also free the sector from the strict Net Zero
requirements that are attached to the issuing of new offshore oil
and gas licenses, whilst we import the same oil and gas from
overseas.
This new mandate would also end the requirement on operators to
budget precious time and capital for emission reduction measures
and environmental impact assessments – a key change after Labour
demanded that all impact assessments done by producers and
operators factored in downstream emissions from the eventual use
of this oil and gas.
Under our plans, extraction would be the sole and only metric by
which operators are judged.
This policy comes following Kemi Badenoch's call for a new
approach to Net Zero – outlining that the current approach will
bankrupt this country and leave the British public paying the
price through higher energy bills and also follows her call for
the end of Energy Profits Levy – stating: “Labour must remove the
energy profits levy. Labour must speed up the process of
replacing it with a system that rewards success and incentivises
investment.”
It also comes after Ed Miliband's ideology assault on the North
Sea has put thousands of jobs at risk, and left the sector in
limbo with OEUK warning that 1000 direct and indirect jobs
in the sector are set to be lost every single month from now till
2030.
MP, Leader of the
Conservative Party, said:
“We are in the absurd situation where our country is leaving
vital resources untapped whilst neighbours like Norway extract
them from the same seabed. With the ONS confirming that economic
growth is down partly because of falling oil and gas extraction,
we cannot afford not to be doing everything to get hydrocarbons
out of the ground.
“Britain has already decarbonised more than every other major
economy since 1990, causing us to face some of the highest energy
prices in the developed world. This is not sustainable, and it
cannot continue.
“That is why I am calling time on this unilateral act of economic
disarmament and Labour's impossible ideology of Net Zero by
2050. Russia's war in Ukraine has only underscored that our
energy supplies are a matter of national security.
“So, a future Conservative government will scrap all mandates for
the North Sea beyond maximising extraction. It is time that
common sense, economic growth and our national interest came
first, and only the Conservatives will deliver that. We are going
to get all our oil and gas out of the North Sea.”
Notes to Editors
The Conservatives have been honest that net zero by
2050 is impossible:
-
The Conservatives have been clear that net zero by 2050
is impossible without bankrupting Britain and making families
poorer. Under new leadership, the Conservatives
have been clear that net zero by 2050 is impossible (BBC
News, 17 March 2025, link).
Labour are decimating the oil and gas industry,
losing thousands of jobs and billions in
receipts:
-
David Whitehouse, CEO of Offshore Energy UK, has warned
that 1,000 jobs will be lost every month in the oil and gas
industry between now and
2030. WHITEHOUSE: ‘Today, we are seeing
skilled jobs being lost on a scale that would be unacceptable
in any other sector. Almost 1000 direct and indirect jobs in
the UK oil and gas sector are set to be lost every month
between now and 2030. But with supportive government policies,
it doesn't have to be this way' (OEUK, Press
Release, 18 August 2025, link).
-
Analysis by Offshore Energy UK has found that changes
made to Energy Profits Levy by the government will result in a
£12 billion loss in receipts for the Exchequer.
Analysis by Offshore Energy UK found that changes made to the
Energy Profits Levy by the government would result in £2
billion less investment, a £13 billion loss in economic value
and a £12 billion reduction in receipts because of a long term
decline in production because of under investment
(OEUK, Press Release, 2 September
2024, link).
The oil and gas sector is burdened by net zero
requirements:
-
Petroleum Act 1998: Under of the
Petroleum Act 1998, the holder of a petroleum licence must act
in accordance with the strategy set out by the North Sea
Transition Authority (NSTA, formerly the Oil and Gas
Authority). Part 1A, Section 9C of the Act states:
- (1) A person who is the holder of a petroleum licence must
act in accordance with the current strategy or strategies when
planning and carrying out activities as the licence holder.
- (2) A person who is an operator under a petroleum licence
must act in accordance with the current strategy or strategies
when planning and carrying out activities as the operator under
the licence
- (4) A person must act in accordance with the current
strategy or strategies when planning and carrying out the
commissioning of upstream petroleum infrastructure
- (5) A person who is the owner of— (a) a relevant offshore
installation, or (b) upstream petroleum infrastructure, must
act in accordance with the current strategy or strategies when
planning and carrying out the activities mentioned in
subsection
- (6) Those activities are—
- (a) the person's activities as the owner of the
installation or infrastructure (including the development,
construction, deployment and use of the infrastructure or
installation);
- (b) the abandonment or decommissioning of the installation
or infrastructure (Petroleum Act 1998, accessed 29
August 2025, link).
-
Energy Act 2016: Under the Energy Act
2016, the NSTA was provided with regulatory powers, including
the ability to participate in meetings with operators, to have
access to data, provide dispute resolution and introduce a
range of sanctions such as enforcement notices and fines of up
to £1 million (NSTA, Legislative Context,
accessed 29 August 2025, link).
-
OGA Strategy: Using the Petroleum Act
1998, the OGA published the OGA strategy. The OGA strategy:
- Places a ‘Central Obligation' on relevant persons. Under
the Petroleum Act, ‘relevant persons' are defined as holders of
petroleum licences, operators under petroleum licences, owners
of upstream petroleum infrastructure, persons planning and
carrying out the commissioning of upstream petroleum
infrastructure.
- Requires relevant persons to take the steps necessary to
‘assist the Secretary of State in meeting the net zero target,
including by reducing as far as reasonable in the circumstances
greenhouse gas emissions from sources such as flaring and
venting and power generation, and supporting carbon capture and
storage projects'
- Requires relevant persons to give due consideration to
whether any infrastructure could ‘contribute to meeting the net
zero target, including by reducing greenhouse gas emissions as
far as reasonable in the circumstances' (OGA, The OGA
Strategy, 2021, link).
-
OGA Plan to reduce UKCS greenhouse gas
emissions: The NSTA published the ‘OGA Plan to
reduce UKCS greenhouse gas emissions' to ‘set out the steps
necessary for emissions reductions pathways'. Under the plan:
- Relevant persons must ‘Select, plan and execute, for each
asset, appropriate emissions reduction and monitoring
initiatives which are aimed at reducing the emissions of that
asset over a reasonable timescale'
- Relevant persons must ‘Accompany any investment proposal to
recover new resources with a commitment to deliver an
appropriate emissions reduction opportunity from the asset's
ERAP, including, where appropriate, through participation in
regional electrification projects'
- ‘New developments with a first oil or gas date after 1
January 2030 must be either fully electrified or run on
alternative low carbon power with near equivalent emission
reductions'
- ‘New developments, excluding tie-back developments, with a
first oil or gas date before 1 January 2030 should generally at
a minimum come online electrification ready'
- ‘All assets intending to produce oil or gas beyond 1
January 2030 must have ERAPs that include a comprehensive
technical and economic assessment of both full and partial
electrification7 options, including a full assessment of
potential emissions savings from relevant regional
electrification schemes. That assessment must identify all
reserves and resources (risked) that may be developed through
that asset'
- ‘Financial investments must be made to electrify all assets
where it is reasonable to do so. In assessing whether
electrification is reasonable, relevant persons must weigh the
total remaining value of reserves and resources (risked) that
will or may be developed through that asset and the expected
emissions reductions from electrification against the expected
cost of electrification'
- ‘Where the NSTA considers that it is reasonable to
electrify an existing asset, but relevant persons have chosen
not to electrify, those relevant persons should have no
expectation that the NSTA will approve FDPs or FDPAs, or issue
any future decisions that give access to additional hydrocarbon
resource on that asset'
- ‘Relevant persons shall, as from 1 June 2024, provide a
documented method of the split of projected flaring and venting
figures into categories (A, B, and C) with their flare and vent
consent applications, to support delivery of zero routine
flaring and venting from 2030 … Zero routine flaring and
venting for all by 2030, for the latter with a particular focus
on methane' (NSTA, OGA Plan to reduce UKCS greenhouse
gas emissions, 27 March 2024, link).
-
Electrification: The UKCS Energy
Integration report outlined that electrification describes
offshore electrification as ‘replacing thermal generation with
power from shore or offshore renewables' (OGA, UKCS
Energy Integration, August 2020, link).