'Smoke and mirrors': North Sea oil legislation stalls amid criticism and lack of Commons time

Government "smoke and mirror" plans designed to maximise North Sea oil and gas production have been delayed to avoid it being rushed through its first stage in 45 minutes.

The Offshore Petroleum Licensing Bill would require the industry regulator to run annual rounds for new oil and gas licences, subject to stringent new emissions and imports tests.

It was due to receive its second reading on Monday evening, but additional Commons business – including lengthy exchanges on the Israel-Hamas conflict and the Horizon scandal – meant MPs would have been left with little more than 45 minutes to debate it.

Marcus Jones, the government’s deputy chief whip, told the Commons: “The urgent question today and the statements have run for significantly longer than anticipated. The second reading of the Offshore Petroleum Licensing Bill will therefore not take place this evening."

It comes after Rishi Sunak's plans have already sparked the resignation of a Tory MP - and been branded a “waste of time” by Labour and a "total distraction" by a senior former minister.

At least two senior Tories signalled they will refuse to support the plan and a majority of opposition MPs will reject it.

Labour leader Sir Keir Starmer said the prime minister had created the plan simply to "create a dividing line with the Labour Party" while former climate change minister Sir Alok Sharma said it is "actually a smoke and mirrors bill which frankly changes nothing".

Mr Sunak has previously said he was lifting the ban on new oil and gas licences in the North Sea in order to save people money on their energy bills and claimed the move would not impact the UK's net zero ambitions.

But Sir Keir said what "the government is passing, or trying to pass, is a waste of time" and "isn’t going to make any difference at all – zero impact – on energy bills".

“What you’ve got is a government that’s wasting its time trying to pass legislation to create a dividing line with the Labour Party rather than to solve the problem," he added.

The Labour Party, SNP and Liberal Democrats have said they will vote against the bill, while Conservative MP Sir Alok warned the government he could not support it without amendments.

"I will not be voting for this bill and as it’s currently drafted, this bill is a total distraction," Sir Alok told the BBC. "It is actually a smoke and mirrors bill which frankly changes nothing.

“The North Sea Transition Authority, which is the body that actually grants oil and gas licences, can already grant licences when they think it’s necessary and the Energy Department has made pretty clear that with respect of this bill, that will not change.

He added: “What this bill does do is reinforce that unfortunate perception about the UK rowing back from climate action.”

Last week, former minister Chris Skidmore said he would be standing down as a Conservative MP at the earliest opportunity in protest against the bill, which would trigger another by-election.

The Tory MP formally issued his resignation on Monday, triggering a by-election in his Gloucestershire constituency of Kingswood.

In a lengthy statement posted on X, formerly Twitter, the MP said: “Next week the Government will be introducing the Offshore Petroleum Licensing Bill in the House of Commons.

“This Bill would in effect allow more frequent new oil and gas licences and the increased production of new fossil fuels in the North Sea.

"It is a Bill that I have already stated my opposition to, by not voting in the King’s Speech debate in protest at the Bill’s inclusion in the Government’s legislative programme.

“As the former energy minister who signed the UK’s net zero commitment by 2050 into law, I cannot vote for a Bill that clearly promotes the production of new oil and gas.”

He went on: “To fail to act, rather than merely speak out, is to tolerate a status quo that cannot be sustained. I am therefore resigning my party whip and instead intend to be free from any party-political allegiance.”

Mr Skidmore added that his decision to resign the whip meant his constituents “deserve the right to elect a new Member of Parliament”.

He said: “I therefore will be standing down from Parliament as soon as possible.”

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...

Mr Skidmore, who has held Kingswood since 2010, has a large majority of 11,220 but that is significantly smaller than the vote share in two constituencies where the government recently lost seats at by-elections.

Labour overturned a 24,664 vote majority in in Mid Bedfordshire and 19,634 in Tamworth late last year.

Along with an expected by-election in Kingswood, the government is also preparing to defend seats in Wellingborough, where Peter Bone was recently recalled, and Blackpool South where Scott Benton is expected to be recalled.

The plan to expand North Sea oil drilling sparked numerous protests when first announced in summer last year, most notably one taking place on top of the prime minister's private residence.

Climate protest group Greenpeace activists draped an "oily-black fabric" over Mr Sunak's constituency home in North Yorkshire in response to the plan.