Ed Miliband and Donald Trump have never been political bedfellows. But on the North Sea, it is no longer just the American President who is at odds with the Energy Secretary.
As the war in the Middle East convulses global oil and gas markets, Labour’s crackdown on home-grown production is facing mounting opposition from all sides – including from people once sympathetic to Miliband’s Net Zero cause.
The Government’s ban on new drilling licences and its swingeing windfall tax have been blamed for crippling the UK’s domestic industry while also reducing tax revenues and pushing up carbon emissions.
It’s a self-inflicted blow that is now prompting opposition from surprising directions – leaving Miliband looking increasingly isolated.
Among those advocating a “drill, baby, drill” approach are not just Kemi Badenoch, the Conservative leader and Nigel Farage, the Reform leader, but also Sir Tony Blair, the former Labour Prime Minister – who has described the current position as “climate theatre”. …
In recent weeks, even green energy evangelists – such as the bosses of Octopus Energy and wind farm trade body RenewableUK – have backed greater North Sea production. …
The Energy Secretary insists that boosting domestic production is pointless because it cannot make a “material difference” and won’t bring down household energy bills. “Our reliance on fossil fuels is costing us,” he said in a recent interview.
Trump has attacked Britain’s strategy, saying the UK is making a “big mistake” by turning its back on the North Sea.
Yet at the heart of the debate are also questions about energy security, tax revenues, jobs and carbon emissions, issues that experts say have been relegated in the name of dogma.
After the outbreak of war in Iran plunged global energy supplies into chaos and with Britons facing up to the prospect of soaring household bills, Miliband’s personal crusade seems more destructive than ever.
About 75pc of the UK’s primary energy still comes from oil and gas (70 million tonnes of crude oil and 65 billion cubic metres of gas) and this will take time to undo, with most of the existing demand stemming from transport and gas heating.
But even if the UK gets close to Net Zero by 2035, it will still consume nearly 40 million tonnes of oil and 30 billion cubic metres of gas.
Yet one key difference will be where it comes from. Over the next decade, imports are expected to rise steadily as domestic North Sea drilling finally runs out of steam.
By 2035, a scenario sketched out by the National Energy System Operator suggests two fifths of our gas supplies will probably come from Norway....<<<Read More>>>...
