The UK Government has moved to ban new North Sea oil and gas exploration as part of a major drive to deliver Labour's climate commitments and accelerate the transition to clean energy.
The Energy Independence Bill would remove the North Sea Transition Authority's powers to grant new oil and gas exploration licences, fulfilling a key pledge in Labour's 2024 manifesto. The Government says the legislation will help drive investment in renewable energy while strengthening Britain's long-term energy independence.
Backlash from Conservatives and industry
However, the proposals have sparked backlash from Conservatives and industry figures, who claim the move threatens jobs and could leave the country more reliant on imported energy. Shadow Energy Secretary Andrew Bowie, Tory MP for West Aberdeenshire and Kincardine, branded Labour ministers "utterly delusional" over the plans.
He said: "This dangerous bill proves how detached from reality the UK Labour government are about our energy security. They may as well hang a closed for business sign over Aberdeen and the North Sea after deciding to double down on their plans to ban any new drilling.
"This will be disastrous for the tens of thousands of workers in the oil and gas sector and leave us increasingly reliant on dirty imports to meet our energy needs."
Existing production unaffected
The Government has stressed the changes will not affect existing production, with major developments including Rosebank and Jackdaw already holding approvals. Rosebank, which was approved in 2022, has faced legal challenges, while production at Jackdaw has recently been approved.
The legislation also includes plans to abolish gas standing charges, accelerate grid connections and establish a £2billion energy wealth fund to support investment in renewable energy. Prime Minister Andy Burnham and Energy Secretary Miatta Fahnbulleh have outlined the Government's ambitions to deliver a cleaner energy system while improving energy security.
Reactions from energy sector and Scottish Government
Prime Minister Andy Burnham said: "Together, these changes will bring bills down for good, give families greater security and put Britain back in control of its energy future."
INEOS Energy chief executive David Bucknall criticised the legislation, saying it "chooses campaign promises over the country's future". He warned the decision could undermine Britain's energy autonomy despite the infrastructure and workforce being ready to support continued production.
Russell Borthwick, of the Aberdeen and Grampian Chamber of Commerce, said: "Britain will continue to need oil and gas for decades to come.
"The question is whether we produce more of it here, supporting British jobs, investment and energy security, or pay other countries to produce it for us."
The Scottish Government has previously adopted a presumption against new oil and gas exploration in its 2023 draft energy strategy, although the First Minister shifted his position in May, highlighting the importance of energy security.
