‘New oil and gas licenses won’t lower bills. Labour must stand firm’

New oil and gas licenses will do nothing to lower bills. Everyone knows it! Renewable UK’s CEO says so. Energy experts agree. So too do the Conservatives. That is why Labour must stand firm on moving beyond North Sea oil and gas production. 

Although a misguided Labour MP has been pushing for more North Sea drilling, the I Paper’s reports suggesting this is widespread in the party are overhyped. I spoke with several Labour MPs following the Monday night PLP who confirmed the near unanimous support for the government’s position. 

The Labour Party wasn’t elected to maintain the Conservative Party’s failed ‘max out’ approach to the North Sea – which saw 200,000 jobs lost. They were elected to change it. Our movement must rally to see this change – and key electoral promise – to fruition. 

‘North Sea is in its sunset era’

The North Sea is a declining basin. Its geology is unchangeable. Most of what is left in the UK North Sea is oil, the majority of which is exported. Taking the remaining gas that’s left will not alter the fact that by 2050 Britain will be reliant on gas imports – even with new developments. Extracting the North Sea dry will not make a dent in global prices given the low production volume meaning the UK will remain a price taker not a price maker. 

READ MORE: https://labourlist.org/2026/03/stay-the-course-clean-energy-independence/

Projects like Rosebank, unlawfully approved by Rishi Sunak’s government, are a bad deal for Britain. Drilling the site will make no difference to energy prices. Trade union leaders have labelled the development a ‘betrayal of Scottish workers’ because the rig was built in Dubai not Scotland. Not to mention that the main beneficiaries would be Shell and the Norwegians since, via Equinor, they own the oil, and would reap the fields profits. This is after UK taxpayers would cover most of the development costs thanks to huge tax breaks. 

Every time there is an energy crisis the default response from the Conservatives and Reform is to increase domestic oil and gas output. This wasn’t a solution to lower bills the last time they obsessed over it and it won’t be when they inevitably do it again. Their energy policy is not intended to lower bills or stimulate growth or secure British energy independence. Instead they’re acting as cheerleaders for profiteering oil companies who, since Russia’s illegal invasion of Ukraine, have made nearly half a trillion dollars in profits. Unsurprising given both parties’ financial links to fossil fuel companies and climate deniers. 

Become a friend of LabourList and join our community. Our friends support our vital non-factional work and get access to exclusive content and events. 

‘Look around the world’

The UK does not boast the large amounts of oil and gas that the USA or Norway does. But UK Labour is not alone. Other countries with declining basins are proactively facilitating the winding down of their oil and gas production. Our North Sea neighbours in Denmark – recently mischaracterised by right wing commentators – remain committed to phasing out production by 2050. Colombia, a similar sized producer to the UK, has ended new licensing. It is not woke or ideological to do this. It’s a practical policy approach for a country serious about a transition that fairly supports workers through the final days of a fading industry and hopes to boost its energy resilience. After all, the decision by the New Zealand Conservative’s to reverse Labour’s ending of new offshore oil and gas exploration in their waters hasn’t protected their country from the current global fallout. 

‘The public want change’ 

Support across the Labour movement for an energy mix powered by renewables and nuclear is strong. Metro Mayors, Scottish and Welsh MSPs and Labour MPs in Westminster support this trajectory. Meanwhile the policies of the Conservatives and Reform will fail to lower bills, deter inward investment and hurt UK Labour’s diplomatic gains on the global clean energy transition. 

There is no electoral advantage to watering down Labour’s climate and clean energy offer. The public want change, it’s what drove voters to put Labour into government. Avoiding any flirtation with a status quo approach to the North Sea is the right thing to do for lowering bills, energy security and a safe climate. 

Subscribe here to our daily newsletter roundup of Labour news, analysis and comment– and follow us on TikTok, Bluesky, WhatsApp, X and Facebook. You can also write to our editor to share your thoughts on our stories and share your own. The best letters are published every Sunday.

• • SHARE: If you have anything to share that we should be looking into or publishing about this story – or any other topic involving Labour– contact us (strictly anonymously if you wish) at [email protected].
  • SUBSCRIBE: Sign up to LabourList’s morning email here for the best briefing on everything Labour, every weekday morning.
  • BECOME A FRIEND: If you enjoyed this, why not consider becoming a Friend of LabourList? Help sustain our journalism, and of course Friends do get benefits… 
  • PARTNER: If you or your organisation might be interested in partnering with us on sponsored events or projects, email [email protected].
  • ADVERTISE: If your organisation would like to advertise or run sponsored pieces on LabourList‘s daily newsletter or website, contact our exclusive ad partners Total Politics at [email protected].