13 JULY 2024 | NEWS
The Government has denied that the Energy Security and Net Zero Secretary, Ed Miliband, overruled officials to block new North Sea oil drilling.
It comes after a report in The Telegraph claimed that Miliband had overruled officials to order an immediate ban, including on drilling that was set to take place in the coming weeks.
The report claimed that the regulator had been instructed not to confirm new licences in the final stages of approval, in a move that would have likely prompted a wave of legal action.
The fate of applications for North Sea oil drilling are determined by the North Sea Transition Authority (NTSA), with many bids awaiting a decision. The regulator is a private limited company, owned by the Energy Secretary.
However, the Government subsequently dismissed the report as “fabricated” and claimed it “invents meetings and decisions that have not taken place”.
Many companies would have been likely to take legal action, having spent millions of pounds preparing to drill in areas as part of bids that were in the final stages of being confirmed, prior to the election being called.
Petroleum licensing is determined in ‘rounds’ by the NTSA, with the 33rd Offshore Licensing Round opening on 7 October 2022. Bids for dozens of areas were still awaiting a decision. The process is usually apolitical.
The Labour Manifesto stated that the Party would “ensure a phased and responsible transition in the North Sea that recognises the proud history of our offshore industry” and that they would “not revoke existing licences”.
In rebuffing The Telegraph‘s report, the Government spokesman reiterated the Manifesto position, saying: “As previously stated, we will not issue new licences to explore new fields. We will also not revoke existing oil and gas licences and will manage existing fields for the entirety of their lifespan.”
The report precipitated a wave of backlash from Conservative politicians, including the Scottish Conservatives. Andrew Bowie, the Scottish Conservative MP for West Aberdeenshire and Kincardine and Shadow Minister for Veterans Affairs, said that he was “appalled for [his] constituents” and that it was “utterly devoid of common sense and legally questionable”.
Meanwhile, Offshore Energies UK chief executive David Whitehouse also expressed concern, saying: “We remain deeply concerned that some of the new proposals being put forward for our industry will undermine the energy transition we all want to deliver.
“Labour’s leadership has recognised that North Sea oil and gas will be with us for decades to come and they have committed to managing this strategic national asset in a way that does not jeopardise jobs. They now need to deliver on their commitment to support our industry.”
North Sea oil and gas was a key dividing line between the Conservative Government and the Labour Opposition prior to the General Election.
In July last year, the former Prime Minister, Rishi Sunak, announced hundreds of new oil and gas licences in a drive for energy independence. The move was vehemently opposed at the time by Labour and Miliband, who was then Shadow Energy Secretary.
He said that Labour would scrap new oil and gas licences in their mission to make Britain a “green energy superpower”.
Further policy announcements are expected in the coming weeks, including in the King’s Speech on 17 July.
