North Sea gas: UK Government insists Offshore Petroleum Licensing Bill isn't 'smoke and mirrors' amid growing backlash

Conservative figures are expected to rebel over the Offshore Petroleum Licensing Bill in a vote on Monday night

The UK Government has insisted its new Offshore Petroleum Licensing Bill isn't just “smoke and mirrors” amid a growing backlash led by former Cabinet minister Sir Alok Sharma.

MPs were due to vote on the Government’s controversial new Bill on Monday evening, which, if passed, initiates an annual process inviting applications for new offshore oil and gas production licences in the North Sea.

Multiple senior Conservative figures have expressed their intention to rebel, including Mr Sharma – the former COP26 president. His protest came on the same day former net zero tsar Chris Skidmore resigned over the Bill, with others putting their name to a letter urging energy secretary Claire Coutinho to drop the legislation.

Sir Alok Sharma who has said that Prime Minister Rishi Sunak's plans to maximise North Sea oil and gas production give the impression he is "not being serious" about tackling climate change. Picture: Yui Mok/PA Wire

Mr Sharma told BBC Radio 4 on Monday morning: “As it is currently drafted, this Bill is a total distraction … it is a smoke-and-mirrors Bill, which, frankly, changes nothing.

"What this Bill does do is reinforce that unfortunate perception about the UK rowing back from climate action.

“We saw this last autumn with the chopping and changing of some policies and actually not being serious about our international commitments. Just a few weeks ago at COP28, the UK Government signed up to transition away from fossil fuels. This Bill is actually about doubling down on new oil and gas licences, it is actually the opposite of what we agreed to do internationally, so I won’t be supporting it.”

Despite this, a large scale rebellion is not expected in the Commons, with unhappy MPs likely to protest further down the line.

An energy and Climate Intelligence Unit (ECIU) said new projects like Rosebank would make little difference to the UK's energy independence and security.

Downing Street was quick to dismiss Mr Sharma's assessment of the Bill. A No.10 spokesperson said: "We need oil and gas for decades to come, even when we reach net zero in 2050.

"The Government believes it is common sense to make the most of what we can produce here rather than shipping in fuels from foreign regimes."

They spokesperson added the public would "expect" consumption of oil and gas to continue to decrease in the future, and stressed the Government had "very clear commitments on our path to net zero".

Confirming his own resignation, Mr Skidmore wrote to the Chancellor to formally stand down.

He said: “Where the UK Government once led in promoting climate action at COP26, it now finds itself opposing the International Energy Agency, the UNCCC, the Committee on Climate Change, in promoting the opening of new additional oilfields and licences for extraction that will not take place at best until decades from now.

“The choice before us is whether to invest in the industries of the future, or to be tied to the industries of the past. No-one has ever denied that we will not need the oil and gas we are using today, but to seek to open up future new sources of fossil fuels, that will be sold on international markets and owned by foreign companies, will do nothing for our energy security.”

Since becoming Prime Minister, Rishi Sunak has lost four seats in by-elections and only managed to retain Uxbridge and South Ruislip by 495 votes.

It comes amid growing unrest in the Tory party, with multiple MPs briefing against those speaking out over the Bill. Mr Skidmore was accused by several of quitting for “no reason” when his seat is being abolished in the next general election, as well of leaving now to take a “cushty” job with an environment group.

The Bill also sparked consternation among opposition parties, with the SNP filing an amendment demanding an evidence-based assessment to all new licences on a case-by-case basis.

SNP energy security and net zero spokesperson Dave Doogan said: "The UK Government's Offshore Petroleum Licensing Bill does not lower fuel bills, deliver energy security or support a just transition to secure jobs for generations to come. And it certainly doesn’t fight climate change.

"Oil and gas will absolutely be required for many years to come, but new licenses must only be granted by the UK Government after a robust, evidence-based assessment. Granting licences should never be a cheap political stunt by a Prime Minster desperate to hold on to power.

“It is only by following the evidence will we deliver cheaper energy bills, energy security and job security. The Bill must outline in no uncertain terms how the UK will transition away from fossil fuels as per the agreed resolution at COP28, and fully acknowledge the climate emergency that the planet is facing.

"Scotland is an energy rich country with the potential to be a powerhouse in the green and renewable sector. However, with Westminster continuing to undermine our progress, our long-term energy security is in jeopardy. Scotland has the energy, we just need the power."

Labour also filed an amendment, saying the Bill was “entirely incompatible with the UK’s international climate change commitments and is a totally unnecessary piece of legislation which will do nothing to serve the UK’s national interest”.

The Scottish Greens went further, pointing to analysis by the Energy and Climate Intelligence Unit that says new projects like the Rosebank oil field will make little difference to the UK’s energy independence and security, and account for less than 1 per cent of oil being used here.

Mark Ruskell, Scottish Greens spokesperson for climate and energy, said: “This Bill is the wrong thing to do for the environment and our net zero ambitions, and is predicated on nothing more than false claims and naked opportunism.

“Prime Minister Rishi Sunak and other Tory MPs stood up and claimed that this was about protecting the UK’s energy independence and security in the face of war in Ukraine and now tensions his Government are stoking in the Middle East. Yet the independent Energy and Climate Intelligence Unit has exposed this as false. It will do nothing of the sort.

“Even his own MPs know it to be not just a lie, but an environmental outrage. One has quit already, and a growing number are telling him to reverse course. There is simply no justification for issuing new licences, let alone doing so on an annual basis.”

The vote will take place late on Monday.