Until this week, the UK had no fixed period between the awarding of oil and gas licensing rounds. But Prime Minister Rishi Sunak has introduced a scheme that would require the North Sea Transition Authority to invite applications for new production licences annually.

The announcement was made in the King’s Speech that marked the opening of Parliament. The new bill was described as helping the country transition to net zero in a “pragmatic, proportionate and realistic way”. 

“This bill will support the future licensing of new oil and gas fields, helping the country to transition to net zero by 2050 without adding undue burdens on households,” the King said, adding it would help “reduce reliance on volatile international energy markets and hostile foreign regimes”.

The government has also said the move will provide job security for 200,000 workers.

The plans draw a dividing line between the Conservative government and Labour, which has campaigned for a...