THE NORTH Sea oil and gas industry will be keeping a close watch on what Sir Keir Starmer says later today on his party’s intentions for the future of the sector.
The Labour leader is in Edinburgh to officially launch the party’s green energy strategy.
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But the offshore industry has already been alarmed at news of Labour’s controversial plans to ban new licences for fossil-fuel extraction.
There has been widespread criticism of this proposal – even from unions and Labour politicians.
Sir Keir is facing a rebellion from party members in the North-east over his plans for the oil and gas sector. Labour councillors in Aberdeen are aiming to lodge a motion at the annual conference describing the policy as “economically illiterate”.
Prime Minister Rishi Sunak last week attacked Labour’s stance on the North Sea industry, claiming it “jeopardises 200,000 jobs”.
Ryan Crighton, policy director at Aberdeen & Grampian Chamber of Commerce, said the proposed ban on new licences will place jobs, investment and energy security at risk.
“It is an irrefutable fact that oil and gas will remain a key component of our energy mix into and beyond 2050, so an energy plan that is cognisant of that is essential,” he said.
“We believe all parties, including Labour, should adopt an explicit position on hydrocarbons, which is that if the alternative is importing oil and gas from overseas, at a greater carbon cost, then we must favour domestic production.
“It’s simple, it’s measurable, and it ensures that the fossil fuels that we do use are extracted with minimum impact on our climate goals.”
As regards today’s visit to Edinburgh by Sir Keir, some good news for Scotland is expected.
The Labour leader is to confirm that the headquarters of the new state-owned energy company GB Energy promised by Labour is to be based at an unnamed location north of the border.
This is being seen as a signal to Scottish voters the country would benefit directly from a UK Labour government.
The Guardian says Sir Keir will also pledge to “throw everything” at net zero and the overhaul of the UK’s energy system and industries, promising new jobs in “the race of our lifetime” to a low-carbon future.
The Labour leader will seek to regain the initiative on his plan for green growth.
Announcing a package of policies designed to decarbonise the energy system and industry, he will say: “We’re going to throw everything at this: planning reform, procurement, long-term finance, R&D, a strategic plan for skills and supply chains. Pulling together for a simple, unifying priority: British power for British jobs.”
Sweeping changes
Labour’s plans include sweeping changes to the planning system that will allow English onshore wind farms, electricity lines, transport links and other low-carbon infrastructure to be built quickly. All regulators will be given instructions to prioritise low-carbon projects, and companies will be given assurances on long-term policy to encourage investment.
But Offshore Energy UK’s chief executive David Whitehouse told the BBC that Labour’s plans to move away from the reliance of North Sea oil and gas “would create a cliff edge”, deterring investment and heightening the risk of energy shortages.
Mr Whitehouse said 180 of the North Sea’s 283 active oil and gas fields were due to close by 2030, and new licences were “essential” or production would plummet and the UK and its skilled workforce will be exposed.
When Scottish Labour leader Anas Sarwar discussed the proposals on the BBC yesterday, Sharon Graham, general secretary of the trade union Unite, responded on Twitter by calling his remarks “simply not acceptable,” accusing UK Labour of a “total lack of detail”, and adding “these throw-away comments cost jobs”.
