Energy Secretary Ed Miliband has launched a North Sea drilling review. This examination seeks ways to allow more oil and gas exploration. However, this action appears to contradict a key Labour manifesto pledge. The party promised not to grant new licences for new fields. Consequently, Miliband is exploring legal and regulatory loopholes.
The government faces pressure from multiple sides. Climate activists demand an end to all new fossil fuel projects. Conversely, former US President Donald Trump urges the UK to “drill, baby, drill.” Additionally, unions and industry groups highlight the 30,000 jobs dependent on the North Sea sector. Therefore, this North Sea drilling review aims to balance these competing demands.
A government spokesperson confirmed the strategy. They stated it would meet manifesto commitments “in full.” The plan focuses on maximizing output from existing fields. Furthermore, it will not involve licences for completely new, unexplored areas. Officials are specifically considering “bespoke” permits for abandoned sites.
These proposals originated from Professor John Underhill at Aberdeen University. His plan incentivizes companies to return to old fields. Importantly, this uses existing infrastructure like pipelines. This approach could potentially extend the life of critical assets. It could also protect jobs in north-west Scotland.
Environmental groups, however, are deeply concerned. Tessa Khan from Uplift criticized the move. She argued it distracts from developing renewable energy. Moreover, she stated it misses opportunities for clean energy jobs. Green campaigners believe the amount of extra fuel is negligible.
Another option under consideration is “tie-backs.” This allows companies to explore new seabed areas from existing sites. The oil industry claims this could unlock over 7 billion extra barrels. Treasury officials see this as a short-term economic growth measure. This North Sea drilling review is therefore a high-stakes political exercise.
Ultimately, Miliband will also face decisions on specific oilfields. The Rosebank and Jackdaw sites require new environmental permissions. Granting these would not technically break the manifesto pledge. This is because the drilling licences already exist. No final decisions have been announced yet. The full strategy is expected in the coming months.
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