UK oil and gas expansion threatens climate goals

What happened: More than 65 UK scientists urged the government to abandon North Sea oil and gas expansion, arguing it contradicts climate goals. Meanwhile, Reform UK proposed new oil and gas licences to cut fuel bills, gaining support from some trade unions and media. Experts warn that opening new fields would undermine global climate targets and UK leadership.

Market impact: UK oil and gas companies like Shell and BP could face increased scrutiny and potential regulatory headwinds. Renewable energy firms might see enhanced opportunities as the government reaffirms its green commitments. Valuations of UK oil and gas stocks may reprice lower, while renewables could see increased investment.

What to watch next: The UK government's response to the open letter and Reform UK's proposal, expected in the coming weeks. The International Energy Agency's (IEA) annual World Energy Outlook report, due in October, may provide further insights into the global impact of new oil and gas projects.