Tories blast Labour and SNP after oil bid defeated – Daily Business

Andrew Bowie: oil workers are being pushed off the net zero cliff edge (pic: DB Media Services)

The UK Labour government comfortably today defeated a move by the Conservatives to end the ban on new drilling licences in the North Sea and approve two oil and gas fields — Rosebank and Jackdaw. 

SNP MPs did not record a vote, nor did Reform members who have condemned net zero as ‘stupid’ and called for more drilling.

The Commons motion followed recent pressure for more oil & gas activity from energy industry leader and even those in the renewables sector who believe more investment in the North Sea will boost security of supplies and help with the transition.

Labour appointed chair of GB Energy Juergen Maier last week confirmed his support for more drilling as did Greg Jackson, chief executive of Octopus Energy. Mr Jackson has argued that liquefied natural gas shipped from around the world was a “lot dirtier” than locally produced gas. 

Mr Maier, while supporting an “all energy” approach, has also said that stepping up production would not bring down energy bills.

Juergen Maier supports more drilling but rejects claims it will cut energy bills

This is the position of Energy Secretary Ed Miliband who told a meeting of the Parliamentary Labour Party earlier this week: “Anyone who tells you that new licences in the North Sea will make any difference to price is not telling you the truth.”

Opponents of more drilling point out that oil and gas are both traded on international markets which fix the price.

Before today’s debate, Energy minister Michael Shanks, said the North Sea basin would continue to produce oil and gas for many years but had been in decline for some time and that renewables presented a more secure future for the UK.

The Conservatives insist that those opposing more drilling in the North Sea are doing harm to the energy workers and to Britain’s economy.

Michael Shanks: North Sea in decline (pic: DB Media Services)

Opening the debate, shadow energy secretary Claire Coutinho warned Labour would be on the “wrong side of history”.

She said: “Shutting down the North Sea is an act of economic self-harm, an unforgivable own goal when it comes to Britain’s energy security.”

Ms Coutinho accused Sir Keir Starmer’s party of being “economically illiterate” in claiming fresh drilling would not reduce costs for ordinary people and insisted that Jackdaw and Rosebank could be “up and running by Christmas”.

She added: “Maybe even they realise that they are, once more, being marched up the hill on the wrong side of history, on the wrong side of public opinion, when we all know there will be an inevitable u-turn from the Prime Minister and the Chancellor in a few weeks’ time.”

Shadow energy minister Andrew Bowie claimed Labour is “being held captive by extremists” who refuse to “take advantage of our greatest asset lying untapped and unexplored under our own waters”.

Mr Bowie, who is also Shadow Secretary of State for Scotland, also criticised the SNP MPs for not supporting the motion. After the vote, he said: “Tonight the SNP have once again turned their backs on Scotland’s energy workers, risking jobs, investment and our national energy security.

“They have joined Ed Miliband and Labour’s drive to push tens of thousands of Scottish workers off the net zero cliff edge.

“Their net zero dogma is hammering livelihoods and hollowing out our rural communities. The truth is the SNP are willing to sacrifice Scotland’s industry on the altar of ideology and let working people pay the price.

“Only the Scottish Conservatives will unlock the economic growth the SNP have failed to achieve in 18 years, backing our North Sea Oil and Gas sector and stand up for Scotland’s future.”

Energy minister Martin McCluskey said oil and gas would play a part “in our energy mix for decades to come”, but argued that more domestic production “won’t make us more energy secure and won’t take a penny off bills”.

He said: “The North Sea is a super mature basin that accounts for around 0.7% of global oil and gas production.

“Production has been naturally falling for more than 20 years, which means our North Sea no longer has the reserves available to support domestic energy demands.

“And crucially, any new licences now would not make any difference to people’s energy bills, because regardless of where it comes from, oil and gas is sold in international markets, where we are price takers, not price makers.”

He insisted the UK needs to “get off the rollercoaster of fossil fuels” and build a more secure, homegrown energy system.

Mr McCluskey added: “Recent events in the Middle East are yet another reminder of the need to speed up that transition and protect British people from these price shocks.”

The motion was unlikely to pass due to Labour’s large Commons majority and the motion was defeated by 297 votes to 108, a majority 189.

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