The UK’s energy strategy has been plunged into controversy after MPs voted to reject a Conservative amendment to the King’s Speech that called for the approval of new drilling licences for the Rosebank and Jackdaw oil and gas fields in the North Sea. The vote, with 323 MPs against and 108 in favour, underscored the government’s commitment to its manifesto pledge of not issuing new exploration licences.
This parliamentary decision arrived just hours before the government quietly announced a significant relaxation of sanctions on Russian oil. Under revised rules, the UK will now permit the import of jet fuel and diesel refined from Russian crude in third countries like India and Turkey. Temporary waivers also apply to the maritime transport of Russian liquefied natural gas (LNG) from specific projects.
The timing of these announcements has ignited fierce criticism, with opponents highlighting a perceived contradiction at the heart of the UK’s energy policy.
Shadow Energy Secretary Claire Coutinho vehemently opposed the North Sea ban, stating during the Commons debate that “only a complete whacko” would scale down domestic production in the face of supply shortages. She warned that the government’s stance would leave the UK “more reliant on higher-emission gas from Qatar or the US”, or necessitate “funnelling billions of pounds to Norway to import gas from the very same basin” in the North Sea. Ms Coutinho labelled the decision “the single greatest act of industrial self-harm we have seen in a generation.”
The Rosebank field, located off Shetland, is considered the UK’s largest undeveloped oil field, while the Jackdaw gas field could supply energy equivalent to heating 1.4 million UK homes. Both projects have faced legal challenges, with initial approvals ruled unlawful in January 2025 due to insufficient consideration of downstream emissions. Despite this, the Conservative amendment sought to push for their approval, citing energy security concerns and the economic impact on regions like Aberdeen and North-East Scotland, which have already seen job losses in the sector.
Energy Secretary Ed Miliband defended the government’s long-term vision, stating:
“While we remain exposed to the fossil fuel rollercoaster, we are deeply vulnerable as a country.”
He affirmed that existing oil and gas fields would remain operational for their lifetime, but stressed that the government was “not in favour of a ‘turning off the taps’ position but… nor are we in favour of a drilling every last drop.”
Miliband highlighted £90 billion of private investment in “clean energy” since the 2024 general election and promoted the Energy Independence Bill’s aim to accelerate offshore wind, hydrogen, and grid technologies.
The controversial easing of Russian sanctions comes amidst a backdrop of severe global energy market disruption. The “de facto blockade” of the Strait of Hormuz, triggered by escalating Middle East conflicts, has led to crude oil prices, such as Brent, surging above $100 per barrel and caused significant increases in jet fuel costs.
Conservative leader Kemi Badenoch criticised the government, stating the UK was now “importing from Russia instead of drilling in the North Sea.”
Conservative Gordon and Buchan MP Harriet Cross, who has been a leading supporter of the oil and gas industry, said:
“This government is morally void. It is both absurd and irrational that on the same day Labour voted against supporting our domestic oil and gas industry, they lift sanctions on the use of Russian oil products.”
“Rather than protecting North Sea production, jobs and UK refineries, Keir Starmer has decided to subsidise Moscow’s war effort while decimating Aberdeen. It is beyond belief, even for this shameful government.”
“At a time when thousands of jobs are at risk, it is disgusting that Labour would rather line the pockets of the Kremlin than support the livelihoods and energy security of its own people.”
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Shell boss Wael Sawan last night called for Ed Miliband to approve the two key North Sea fields, arguing such schemes would “create jobs that create taxes to pay for the many things that a country requires”.
Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, articulated the industry’s frustration, highlighting the “glaring contradiction” of loosening restrictions on Russian imports while blocking domestic production.
The unfolding events underscore the complex challenge facing the UK as it navigates the transition to cleaner energy while confronting geopolitical instabilities and domestic economic pressures, balancing climate commitments against immediate energy security needs.
