Keir Starmer’s government appears to have softened its stance on oil and gas. Back in June 2023, the Labour leader told an audience in Edinburgh that there would be no new licences for oil and gas exploration in the North Sea. Instead, a Labour government would pursue green energy all the way, slashing our bills (it promised) and taking us ever faster to the nirvana of net zero. But how the responsibilities of government come to bear. A release from the Department for Energy Security and Net Zero (DESNZ) this morning indicates some notable shuffling of ground.
Far from cheering a recent Supreme Court ruling which quashed planning permission for a small oil well development in Surrey on the grounds that the Environmental Impact Assessment hadn’t considered the carbon emissions which would be released when the oil was burned, the government says it will step in to help the oil and gas industry to obtain the relevant consents for developing new fields. It will consult on new planning guidance to ensure that projects can go ahead. While the government says it will not challenge a judicial review brought by Greenpeace on the development of the Jackdaw and Rosebank oil fields in the North Sea – which are similar to the challenge against the Surrey oil field – the licenses for those fields will not be withdrawn. They may still go ahead if they can satisfy the new guidelines.
The government has thought twice about throwing the oil and gas industry to the dogs in favour of renewables
Remarkably, the DESNZ adds that ‘oil and gas production in the North Sea will be a key component of the UK energy landscape for decades to come as it transitions to our clean energy future in a way that protects jobs.’
In other words, the government has thought twice about throwing the oil and gas industry to the dogs in favour of renewables. But the wording of today’s statement does rather suggest that the inspiration for its change of heart was not so much the interests of energy consumers as those of oil and gas workers. If anyone was in doubt that Labour is suddenly worried about destroying jobs in the oil and gas industry, the release adds:
‘The government recognises the proud history of the UK offshore industry and the brilliance of its workforce, particularly in Scotland and the North East of England, and the ongoing role of oil and gas in the country’s energy mix.’
What about the concern that has been raised here, and in many other places, about Labour’s energy policy? How is the government intending to keep the lights on if it tries to switch Britain to renewables without much in the way of reliable back-up?
Labour’s new-found enthusiasm for the oil and gas industry can be seen as another victory for the unions, albeit, in this case, in a way which will act in consumers’ interests, too. This shouldn’t come as a big surprise. Back in June, the Unite union refused to endorse Labour’s manifesto specifically on the grounds that its energy policy would destroy jobs in the North Sea. There are other ways in which Labour’s relationship with the unions is a threat to the economy, most notably the government’s capitulation to pay demands from Aslef and others without any proper requirement for them to adopt more efficient working practices. But for once the unions are right, and their influence on the government is beneficial to us all. Let’s enjoy that while we can.
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