Labour is set to introduce legislation that would permanently ban new oil and gas drilling licences in the UK, making it significantly harder for future governments to reopen the North Sea to new exploration.
The proposed Energy Independence Bill, outlined in Wednesday’s King’s Speech, would place Ed Miliband’s current moratorium on new drilling into law. The legislation would also formally ban onshore fracking.
Industry leaders, including executives from British Gas and Octopus Energy, have urged the UK Government to reconsider its North Sea stance in light of growing energy security concerns.
Claire Coutinho, the shadow energy secretary, said the policy would “amount to the wilful destruction of our own domestic energy supplies and people’s livelihoods”.
She added: “It is utterly shameful and we Conservatives will fight them every step of the way.”
Richard Tice, Reform UK’s energy spokesman, described the plans as “ludicrous”.
Existing oil and gas fields would continue operating until depleted, though uncertainty still remains around major undeveloped projects including Rosebank and Jackdaw.
Russell Borthwick, Chief Executive, Aberdeen & Grampian Chamber of Commerce, said:“We cannot have energy independence by making ourselves more reliant on imported oil and gas.
“A permanent ban on new licences would send a devastating signal to investors at exactly the wrong time. It risks accelerating the loss of world-class talent, supply chain capability and private capital from the UK.
“This should not be framed as a choice between oil and gas or renewables. The reality is that the same companies, workers and communities driving offshore energy today will build the low-carbon systems of tomorrow.
“What industry and communities need is a credible transition plan — not headlines, not ideology and not policies that weaken the UK economy while increasing reliance on imports with a higher carbon footprint.”
Enrique Cornejo, at Offshore Energies UK, said: “It makes sense for the UK to make the most of its entire homegrown energy mix – the oil and gas it continues to need, plus wind and other renewable sources of energy alongside nuclear power.
“Events in the Middle East are showing very clearly that the UK must reduce its reliance on energy imports, but the nation is set to depend on shipments from places like the USA and Qatar for half its gas by 2035.”
Tone Langengen, at The Tony Blair Institute, said: “As the Climate Change Committee makes clear, oil and gas will remain part of the mix for decades. Maintaining domestic supply where it makes sense is vital to reducing exposure to volatile global markets.”
Mr Miliband defended the policy, saying rapidly accelerating renewable energy deployment was “the only way to bring down bills for good and take back control of our energy”.