Ed Miliband is reportedly set to row back on Labour’s ban on new oil and gas drilling in the North Sea. The Energy Secretary is said to be looking at softening the manifesto pledge not to issue new oil and gas licences.
It comes amid pressure from Labour’s union backers over mounting job losses and Nigel Farage‘s Reform UK, which has vowed to scrap net zero targets. Mr Miliband is reportedly considering watering down the policy by allowing new fields adjacent to existing ones, known as “tie-backs”, to be approved.
A source told The Sunday Times: “The question mark is can they do new licences in new fields if they run the infrastructure back to existing licensed blocks.”
An insider insisted that the move would not mean “billions and billions more barrels” extracted.
They added: “What it would do would give the sector a few more years. And that will sustain the supply chain for longer, which will be needed for renewables. This would allow the transition to actually happen.”
Government lawyers have reportedly been tasked with examining whether Labour can claim to be sticking to its original pledge while allowing for extra exploration to go ahead.
It comes after Donald Trump last week urged Sir Keir Starmer to exploit the “great asset” of North Sea oil and gas.
Speaking during his state visit to Britain, the US President said his “drill, baby, drill” policy had helped bring down American prices.
Sir Keir said he was “absolutely determined to ensure that the price and cost of energy comes down” for households and businesses.
He added: “The mix will include oil and gas for many years to come from the North Sea. We have been clear about that for some time, but we also need to mix that with renewables. And it’s the mix that’s really important.
“And the approach I’ve taken on this is the same approach that I say to many other things: a pragmatic approach.”
A source close to Mr Miliband said: “We are working to ensure a policy outcome which delivers on the twin objectives of the manifesto — ensuring a world-leading position on no new licences to explore new fields, and to maintain existing fields for their lifetime.
“We will deliver both on climate leadership and a just transition in the North Sea.”
