Sir Keir Starmer is reportedly facing pressure from cabinet ministers to reconsider his opposition to new North Sea drilling, as economic strains from the conflict in Iran mount. Sources told The Times that ministers argue the government is overlooking the potential economic benefits of domestic oil and gas production.
While Starmer has maintained that new drilling would not lower domestic oil prices—since they are set internationally—some ministers and industry figures now challenge this view. They contend that boosting domestic production could strengthen the pound and reduce costs across the economy. One Whitehall source noted, “Even small changes make a difference at scale. It might get us a few more solar panels and batteries for the same price too.”
Labour’s 2024 manifesto pledged to issue no new licences for exploring new oil fields, asserting such a move would not cut bills, enhance energy security, or help the climate. However, pressure has intensified after Iran blocked the Strait of Hormuz, a vital shipping route for a fifth of global oil and gas, sending energy costs soaring.
Climate experts, however, dispute the benefits. Dr Anupama Sen from Oxford University called the notion that more North Sea extraction would lower bills “misleading,” as oil and gas are priced on international markets. Professor Gavin Bridge of Durham Energy Institute described the North Sea as a “highly mature basin” in long-term decline, meaning new supply would have a “negligible impact” on prices.
Former Prime Minister Sir Tony Blair has also weighed in, urging Starmer to tear up key green commitments. In a 5,000-word essay, Blair argued the war in Iran exposes the UK’s “structural vulnerability” to fossil-fuel shocks and called for a reset of energy strategy. Asked if he was proposing scrapping net-zero targets, Blair told Times Radio: “Britain’s emissions are under 1 per cent of global emissions… I don’t understand the logic behind shutting down our own oil and gas industry.”
Ofgem recently announced a 13 per cent rise in the price cap from July 1, driven by the Middle East conflict, adding £18 per month to average household bills. The Department for Energy Security and Net Zero has been contacted for comment.
