16.03.202113:40 Forex Analysis & Reviews: UK to ban licenses on exploration of new oil fields.

The UK is currently exploring the possibility of banning licenses to explore new offshore oil and gas fields. This is part of its radical move away from fossil fuels, since it wants the country to achieve zero pollution and recover from ecological crisis.

But to do this, the UK needs to find balance between ensuring that emissions will decrease, all while maintaining the oil and gas industry in good shape. The sector supports 270,000 jobs across the country, which are the main contributors to tax revenues.

Nevertheless, the UK government already announced that it will ban the sale of new gasoline and diesel vehicles by 2030, in line with its environmental recovery plan and as part of its promise of cleanliness by 2050.

UK ministers are also considering whether to stop issuing licenses in 2040.

This push to move away from oil and gas is seen as the UK taking on global leadership as part of its pledges ahead of the COP26 climate summit to be held in Glasgow, Scotland, in November.

However, a ban on new offshore licenses would be controversial to Scotland.

"Our analysis of the oil and gas licensing regime aims to ensure that it remains consistent with our goal of achieving net zero emissions by 2050," a spokesman for the UK Department of Business, Energy and Industrial Strategy said.

Responding to the report, Mike Tholen of OGUK said: "Working together, we can help bring about energy transition by providing the UK with the oil and gas the country needs for decades to come, all while reducing its environmental impact. Any restriction on activities due to licensing restrictions risks undermining the UK's ability to achieve a zero future, and harms our domestic supply chain. It also increases energy imports while exporting jobs and skills. "