Norway has reopened oil and gas exploration in the North Sea for the first time since 2021, prompting opposition parties to urge the UK Government to lift its own ban on new drilling licences.
The Norwegian energy ministry announced it will invite bids for exploration across the northern Barents Sea, the Norwegian Sea and parts of the North Sea, in a move aimed at securing the country’s role as “a long-term supplier of oil and gas to Europe.”
Energy Minister Terje Aasland said the new licences would create jobs, drive investment and sustain Norway’s technology-intensive oil and gas sector. “Oil and gas are the engine of the Norwegian economy,” he said, adding that the licensing round had already attracted “great interest” from industry.
The UK imposed a ban on new oil and gas licences last year under Energy Secretary Ed Miliband, with around 180 of the country’s 280 existing fields expected to close within five years.
Conservative shadow business secretary Andrew Griffith said the UK was “missing a massive economic trick” by failing to exploit its remaining North Sea reserves. Reform UK energy spokesman Richard Tice went further, calling for both offshore and onshore shale gas drilling and urging the Government to take equity stakes in new projects, similar to Norway’s sovereign wealth fund model.
Industry body Offshore Energies UK warned Britain risks increasing its reliance on imports unless it backs domestic production. CEO David Whitehouse said: “Norway’s decision underlines its commitment to secure supplies for Europe alongside renewable growth. With supportive policies, we could produce half of the oil and gas needed to reach net zero by 2050 from UK waters.”
The Department for Energy Security and Net Zero defended the ban, arguing that new fields would not cut household bills, improve energy security or help meet climate targets.
Oil prices currently hover at around $67 per barrel, while Ofgem’s household energy price cap stands at £1,720 – up sharply from pre-Ukraine war levels.