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The National (Scotland)
The National (Scotland)
National
Steph Brawn

Labour urged to come clean on oil and gas licensing amid confusion

LABOUR have been urged to come clean about their positon on new North Sea drilling after confusing reports claimed the party had ordered an immediate ban. 

The Telegraph reported Energy Secretary Ed Miliband had overruled his officials and told regulators not to approve a new round of drilling that was slated for confirmation in the coming weeks.

The UK Government’s Department for Energy Security and Net Zero has since denied the reports, but stressed that no new drilling in the North Sea remains Labour’s policy after the commitment was included in their manifesto.  

Labour are now under pressure to clarify about their position on a ban.

The reports were met with joy from some climate campaigners but across the political spectrum there is concern for how a ban could affect oil workers’ livelihoods, while there are accusations from the Scottish Greens that Labour are not being ambitious enough.

Questions were asked by journalists at the Telegraph about outstanding drilling applications after 76 oil and gas companies applied for licences as part of the 33rd offshore oil and gas licensing round last year.

Bids for up to 35 areas of the North Sea were still awaiting a decision from the North Sea Transition Authority (NSTA) when the election was called. 

Aberdeenshire SNP councillor Fatima Joji said she wants to see a clear plan from Labour to fund a just transition after the confusing reports.

She told The National: “This uncertainty is putting a just transition at risk.

“I hope to see from Ed Miliband in his new role in the coming days, signs of drawing up a clear and robust plan to fund a just transition in the North East.

“We must transition, and the focus by Ed Miliband should be on investment and funding that will build our resilience, take our north east workers with us, and meet our climate goals.

“Oil and gas workers have a pivotal role to play in this energy mix as we move away from fossil fuels and towards renewables. I fear any attempts to adopt the Thatcher-era mine closures playbook, and it is the north east that will bear the brunt of the economic and social consequences of this decision.”

(Image: PA)

Aberdeen Central SNP MSP Kevin Stewart added: “This UK Government isn’t even a week old and already we have conflicting statements on the future of the North East’s oil and gas industry coming from the Secretary of State and government officials. This simply isn’t good enough.

“Decisions over new licences should be made on a case-by-case basis, rather than implementing a blanket ban with no plan.

“This new UK Government needs to work with the industry to make sure the transition to Net Zero is done in a just way that doesn’t damage our energy security, and stop putting tens of thousands of jobs at risk – including the 100,000 jobs that industry experts say will be lost if they follow through with their plans to increase the windfall tax.”

Patrick Harvie (above), Scottish Greens co-leader, said while a ban would be a step in the right direction, he remains frustrated Labour has no plans to revoke more than 100 licences granted by the Tories in the last year of their government.

He also stressed there needed to be more ambition towards a just transition for workers.

He said: “There is no amount of new fossil fuel exploration that is compatible with the scale of climate action we need to take. 

“We really must see more ambition towards a just transition for workers and communities in Scotland.

“We must also challenge the new Energy Secretary on Rosebank and other recent licences. If he really wants to tackle the climate emergency then he must now revoke the over 100 licences granted under the Tories, putting an end to these projects of environmental vandalism.

“Keeping these licences in place is simply incompatible with keeping the goal of limiting global warming to 1.5 degrees.”

Harvie highlighted how just months ago, Scottish Labour MSPs condemned the approval of the Rosebank field as a “climate-wrecking” decision but appear to have no plans to revoke it.

“As it stands, Labour have made no move to stop the oil and gas giants extracting huge amounts of wealth from the North Sea and pocketing the proceeds of Tory tax cuts while local households are left in fuel poverty,” Harvie added.

“Labour needs to step up and end the tax cuts and ensure the industry pays fair taxes so it can be invested in public services and local communities across Scotland.”

There are major fears any ban on new licences without a solid plan to transition to renewables would leave hundreds of thousands of workers in limbo.

SNP Glasgow councillor Mhairi Hunter said while she backed any move to ban new drilling, she equally has concern for what it might mean for people’s jobs.

“I agree with not issuing new drilling licences in the North Sea but this action will cause deep and justified worry about people’s livelihoods,” she posted on Twitter/X.

“There must be urgent and substantive action and investment to support a just transition of the sort Labour originally committed to.”

The Scottish Conservatives have also reacted with fury to the reports.

Former Aberdeen South MP Ross Thomson said: “Overruling officials to ban North Sea oil exploration will devastate the north east economy, inflict huge damage, put tens of thousands of jobs at risk and jeopardise UK energy security.”

Alba Party leader Alex Salmond said Labour should be attaching carbon capture obligations to all continuing oil fields, rather than implementing a ban.

Salmond said: “Labour needs to find a considered approach to oil and gas which can reconcile its continuation with the future of the planet. Instead of a blanket ban they need to attach carbon capture obligations to each continuing field development.

"It's time Labour come clean to North Sea workers, and the people of Scotland, what their plans really are.”

Regarding original reports on a ban, a DESNZ spokesperson said: “This piece is a complete fabrication - it invents meetings and decisions that have not taken place.

“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.

"We are working with the North Sea Transition Authority to ensure a fair and balanced transition in the North Sea.”

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