Tony Blair's think tank has called on the Labour government to reverse its ban on new oil and gas drilling licences in the North Sea, echoing demands made by US President Donald Trump. The Tony Blair Institute (TBI) argues that the current policy is driving capital out of the basin and increasing policy risk.
Labour has committed to phasing out North Sea oil and gas production by restricting new licences and raising the Energy Profits Levy. However, the TBI's report urges the government to lift the ban and cut tax rates, stating that new licences should be granted under a clear framework focused on commercially viable, less carbon-intensive projects compatible with a declining long-term production profile.
The report criticises the government's 'Clean Power 2030' target, describing it as 'climate theatre' rather than 'climate leadership'. It warns that an energy strategy ignoring revenue, security and political consent will not endure, and calls for a focus on cheaper, abundant power to sustain growth and maintain public support for climate action.
President Trump recently described the North Sea as 'one of the greatest reserves anywhere in the world' and criticised the UK for making it 'impossible for the oil companies to go'. The TBI's recommendations align with this view, urging a more pragmatic approach to the energy transition.
