Labour’s nerves about a brutal by election are showing
The PM faces an electoral contest with the Greens but there is great concern about North Sea energy (Image: Wiktor Szymanowicz/Future Publishing via Getty Images)
Prime Minister Andy Burnham has been urged to find the “backbone” to give the green light to drilling in North Sea oil and gas fields rather than delaying an announcement for fear of boosting support for the Greens. Labour is battling to stop Green leader Zack Polanski winning Sir Keir Starmer’s old seat of Holborn and St Pancras in the October 8 by-election.
Mr Burnham has been urged to use his flagship speech at next week’s Labour conference to declare his support for the energy projects as fears mount about the future of Britain’s oil and gas industry. The Government had been expected to back drilling in the Jackdaw gas field before Parliament broke up for the conference recess but a decision is now not expected until after Labour’s showdown with the Greens.
Russell Borthwick, Chief Executive of Aberdeen & Grampian Chamber of Commerce, told the Sunday Express: “Decisions of this importance should be taken on their merits, not delayed for political expediency. Jackdaw and Rosebank represent billions of pounds of investment, support thousands of good jobs and will provide secure energy from our own waters that Britain will otherwise have to import.”
Industry body Offshore Energies UK supports the development of renewable technology but warns that more than 40% of UK energy is now imported and forecasts that the country will need at least 11 billion barrels of oil and gas between now and 2050.
Richard Brooks, who leads the Conservative group on Aberdeen’s city council, said: “It is essential that Andy Burnham considers the national and local economic picture and uses his conference speech to alleviate all doubt and give the Rosebank and Jackdaw projects the green light. Having the backbone to make such an announcement would do much for his credibility among many oil and gas workers that this Labour party have claimed time and time again to represent.”
Britain was left in no doubt about the strength of feeling in June when the Conservatives ousted the SNP in the Aberdeen South by-election.
An industry insider said: “Every delay pushes us closer to a point where recovery becomes impossible. If the postponement of Jackdaw and Rosebank is indeed a political calculation designed to influence a by‑election, it is profoundly irresponsible. While Westminster hesitates, a once world‑leading industry edges towards the point of no return.”
Andy Mayer, and energy analyst with the Institute of Economic Affairs, also urged the PM to put aside the threat to his party from the Greens in London.
He said: “Oil and gas prices are at their highest level since 2022. The UK is sitting on vast reserves, and will be using both well beyond 2050. Opening these fields should not be a matter of debate, the economic and security case is clear. A serious Government, let alone one with an unassailable majority, would be considering that ahead of the obsessions of internal critics and campaigners in a single seat.”
Zack Polanski is standing to succeed Sir Keir Starmer in Holborn and St Pancras (Image: James Manning/PA Wire)
The Tories have linked the hike in inflation to 3.1% to Labour’s “mad energy policies”. Further support for drilling came from leading think tanks.
Sean Ridley, an energy researcher at the Centre for Policy Studies, called on Mr Burnham to stand up to Left-wing opponents of drilling, saying: “He might face resistance from within his party but it’s time to show leadership and recognise that what we’re doing is placing now an undue burden on bill payers and British industry.”
Fred de Fossard of the Prosperity Institute warned: “If the Prime Minister takes British energy security and British prosperity seriously he would approve these fields, repeal the windfall tax on the North Sea and remove all regulatory barriers to drilling.”
And Silvia Andreoletti of the Adam Smith Institute, said: “The UK’s energy costs are the highest in the developed world and are continuing to rise, taking more and more money out of Brits’ pockets. Expensive energy hurts manufacturing, increases inflation, and is one of the country’s biggest barriers to growth.
“If Britain wants genuine energy security, it must develop its own oil and gas supply. To remain reliant on imported energy means being at the mercy of price fluctuations and exposed to even bigger cost hikes.”
Protesters in 2024 opposing Rosebank drilling (Image: Andrew Milligan/PA Wire)
But Areeba Hamid of Greenpeace UK argued: “The case for saying no to Jackdaw and Rosebank only gets stronger as the decision is deferred. The Government might want to put some distance between the wildfires and drought of the summer and an expansion of fossil fuel drilling, but would that decision look any less absurd a few months from now, with ministers standing knee-deep in the floodwater?
“The right decision is obvious. Pass on Jackdaw and Rosebank, and instead put the energy, investment and political capital into the cheap, homegrown renewable power that will bring down bills and create long-term employment.
“On all counts – bills, jobs and emissions – the case against drilling is clear cut.”
A spokesperson for the Department for Energy Security and Net Zero said: “We do not comment on speculation. The North Sea remains a vital national asset and oil and gas will continue to play an important role in our energy system for decades to come – alongside transitioning to clean power to protect jobs and tackle the climate crisis.
“Any decision will take into account all relevant evidence, including environmental assessments and public representations received during the consultation process.”