Offshore staff
LONDON — Offshore Energies UK (OEUK) has spoken out against proposals by Britain’s opposition Labour party for the oil and gas sector, with a general election to be held by late 2024.
According to a report in The Sunday Times, Labour leader Sir Keir Starmer will announce plans to block all new North Sea oil and gas developments.
The article was accompanied by a leader column warning of the associated risks, including raising Britain’s reliance on imported energy and reducing its energy security. The leader also noted that oil and gas accounts for 75% of the UK’s total energy mix, with domestic supplies providing a vital safeguard against future global shortages.
And Labour is reportedly considering further proposals to end the awarding of new offshore licenses for oil and gas.
OEUK said Labour should take a more collaborative approach to the UK’s offshore industry, following the example of the US, Norway and countries in the Middle East that work with their own energy sectors to support domestic supplies, while at the same time drawing on their industry’s expertise to develop technologies for wind and mass hydrogen production.
The association’s recent Business Outlook Report warned that uncertainties over the UK sector’s future are making it harder for companies to secure investment in oil and gas projects. And without new investment in domestic production, the UK could be importing 80% of its oil and gas needs in 2030 compared to around half now.
OEUK CEO David Whitehouse said, “People wouldn’t forgive anyone who shut down Britain’s oil and gas industry only to replace it with imports of foreign oil and gas…Labour’s approach risks sending the wrong signals. Labour’s proposals are also very unclear, especially on costs. Our sector now needs clarity on the detail of Labour's plans including analysis on what they mean for jobs, energy security, imports and Britain’s overall economy…
“There is no simple choice between oil and gas on the one hand and renewables on the other. The reality is that to keep the lights on and grow our economy, we will need both. By the mid-2030s, oil and gas will still provide for 50% of our energy needs.”
According to other press reports, Labour has accepted donations from the Just Stop Oil movement.
05.31.2023
