UK oil producers and explorers from Shell PLC (LON:RDSa) (LSE:SHEL, NYSE:SHEL) to Deltic Energy PLC (AIM:DELT) and Enquest Plc (LON:ENQ)have been given a boost by reports that Liz Truss will unlock around 130 North Sea oil and gas drilling licences soon after she becomes Prime Minister next week.
Truss, who is clear favourite to win the race to be the next PM, and her expected senior cabinet appointees are reported to be planning to make the approvals in one of her first acts in the new job.
With household energy bills soaring following Russia's choking off of its gas pipeline in the wake of the invasion of Ukraine, Truss's mooted team have reportedly been meeting energy companies to negotiate deals to secure supplies for winter.
The new North Sea licences are not expected to help lower prices in the short term, the report acknowledged.
Last week it was revealed that Britain has completely stopped fuel imports from Russia, while domestic gas production increased 26% from the previous year.
Business secretary Kwasi Kwarteng, who is expected to be made Chancellor of the Exchequer under Truss, and Jacob Rees-Mogg, currently Brexit opportunities minister and expected to become business secretary, have been leading a push to secure more domestic production in recent weeks, the Times reported, as well as securing more gas from Norway.
Rees-Mogg was said to have met senior executives at Shell and TotalEnergies SA (LON:TTEF) over the weekend.
There are estimated to be close to 15bn barrels of oil and gas under the North Sea, according to the Offshore Energies UK trade body's analysis of North Sea Transition Authority data, equivalent to around 15 years of usage.
If Truss wins, she will invite applications for around 130 drilling licences to explore new fields, The Times reported, up from the 119 licences awarded in the last licence round in 2019 and 123 in 2018.