A coalition of eight former energy ministers has written to Prime Minister Keir Starmer urging a dramatic reversal of North Sea oil and gas policy.
The cross-party group, spanning Labour, Conservative and Scottish Government ranks, includes former Conservative energy secretary Amber Rudd and ex-Labour business and energy secretary John Hutton.
In a joint letter, the former ministers voiced “deep concern” regarding the continued decline of domestic hydrocarbon production.
They argued: “The premature curtailment of domestic production is not primarily the result of geology but of policy decisions made by both Labour and Conservative Governments.”
The group warned: “Energy security is national security. Without urgent reform we will become increasingly reliant on imported liquefied natural gas.”
The former ministers set out three principal demands for the Government in their correspondence.
First, they called for an earlier conclusion to the Energy Profits Levy, the windfall tax imposed on oil and gas producers, which under current plans will remain in place until 2030 unless energy prices fall below a specified threshold.
Second, they urged ministers to reverse the prohibition on issuing fresh exploration licences in the North Sea.
Keir Starmer has been urged to dramatically reverse North Sea oil and gas policy
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Third, the group pressed for approval of two major new hydrocarbon developments, the Rosebank and Jackdaw fields.
Rosebank would be operated by Norwegian state energy firm Equinor, while Jackdaw would be led by Shell.
The previous Conservative administration had granted consent for both projects.
However, a court subsequently overturned those permissions on the grounds that the climate implications had not been adequately assessed.
Ed Miliband argues the North sea cannot help lower bills
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PAFormer energy minister Charles Hendry told the Financial Times: “With such substantial resources still available to the UK, it makes no sense at all to pursue policies which will only increase our energy imports.”
He added: “We are calling on the Government to allow new drilling licences that will maintain UK energy security, protect jobs, generate revenue and attract investors back to the North Sea.”
The intervention adds to mounting pressure on ministers to reconsider their approach to North Sea production.
Industry lobby groups have advanced similar arguments, while the GMB industrial union has also backed calls for a shift in policy.
The Tony Blair Institute has likewise urged the Government to reassess its stance on further North Sea development.
A Government spokesperson defended the current policy framework, stating that plans for the Energy Profits Levy would provide “the sector and its investors the long-term certainty to plan, invest and support jobs.”
Ministers have argued that the North Sea basin is experiencing natural decline following decades of extraction and say they are seeking to guide the industry towards offshore wind and carbon capture technologies.
Energy Secretary Ed Miliband has said that expanding North Sea drilling would not reduce household bills, given that energy prices are determined by international markets.
Amber Rudd was part of Boris Johnson’s cabinet
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Those backing continued production argue that oil and gas still account for approximately 75 per cent of total UK energy consumption, leaving Britain exposed to imports as domestic output falls.
Several of the letter’s signatories have industry connections.
Ms Rudd serves on the board of Centrica and advises Equinor, while Mr Hendry holds an unpaid fellowship at the Atlantic Council, which receives funding from oil majors.
