I cannot see how the issuing of North Sea oil licenses by UK Government will make much difference at this time. . This is because the Government appears to be "in" with the WEF (World Economic Forum) and it cannot be difficult to guess that licence holders won't like the tax regime, and may find it difficult to get any finance or insurance .
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| Reuters : North Sea Oil License |
The Tax liability
The energy profits levy is set to remain in place until March 2028. It puts a marginal tax rate of 75% on North Sea oil and gas production . If this blogger had a few million quid to spare then that would put me off investing just by itself.
Finance and Insurance ?
Mark Carney is a former Governor of the Bank of England and associated with the World Economic Forum (WEF). He is Co-chairman of the Glasgow Financial Alliance for Net Zero (GFANZ). GFANZ is a global coalition of leading financial institutions which are "committed to accelerating the de-carbonisation of the economy." This is all linked to the Paris agreement which seeks to limit global temperature increase to 1.5deg celcius.
Many of the financial institutions and insurance companies are signed up to the Mark Carney Financial alliance for net zero.
If things remain as outlined above, I cannot see how any loans or investment will be attracted to these extraction operations, or that anyone will want to insure them.