The offshore energy industry has
warned Labour against simplistic proposals to end new licenses for oil and gas.
Offshore Energies UK repeated its plea to Labour to
engage further with industry.
It touted the approach of the US, Norway and many
countries in the Middle East which are successfully working with the sector to
make the most of domestic supplies and capitalise on the investment and
expertise to accelerate the expansion of wind, hydrogen, and key net zero
technologies.
The oil and gas industry remains essential for UK
economic and environmental prosperity, supporting over 200,000 skilled jobs
across the length and breadth of the country and adding over £20billion to the
economy this year alone.
Investment by companies is becoming harder to secure
due to political tensions over the sector’s future. The sector has consistently
warned that without new investment in domestic production, by 2030 the UK will
import 80% of its oil and gas compared to around half now.
Commenting, OEUK Chief Executive Dave Whitehouse said: “People wouldn’t forgive anyone who shut down
Britain’s oil and gas industry and replaced it with imports of foreign oil and
gas. Everyone is clear that the energy system must change; business and
government must do this in partnership. Labour’s approach risks sending the
wrong signals.
“These
proposals are uncosted. The sector now needs clarity on the detail of Labours
plans including analysis on what they mean for jobs, energy security and
Britain’s economy.
“By
investing in homegrown production, we avoid costlier, less secure, and higher
carbon footprint imports while supporting the infrastructure we need to make
cleaner, more affordable energy in the UK, for the UK.
"As we build that future there is no simple choice
between oil and gas on the one hand and renewables on the other. The reality is
that to keep the lights on and grow our economy, we need both. By the
mid-2030s, oil and gas will still provide for 50% of our energy needs.
“We urge Keir Starmer and Rachel Reeves to fulfil
their promise to listen to industry and engage with our workers. We need to
meet our climate goals while not undermining energy security, the economy and
the very people needed to deliver secure and affordable energy.”