United Kingdom Reconsiders Limiting North Sea Drilling

The United Kingdom (UK) government may not impose a ban on new exploration licenses in the North Sea basin after reports that UK ministers are eyeing to change of policy for the North Sea oil industry off the coast of Scotland.

The UK’s the North Sea is producing about 1 million b/d of light sweet crude that forms the backbone of the Dated Brent benchmark, which is used to price two-thirds of the world’s oil.

The unidentified source told the Platts that they think it’s “very unlikely the outcome will be an outright ban on these licenses.”

By 2050, UK has committed to a net-zero emissions target. They also plan to ban the sale of internal combustion engine vehicles by as early as 2030 despite the oil and gas industry employing almost 300,000 people.

Reports of a ban on exploration coincide with proposals tabled by S&P Global Platts to add US crude to the so-called Brent complex to shore up declining volumes.

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