{"id":261220,"date":"2023-06-08T12:44:48","date_gmt":"2023-06-08T10:44:48","guid":{"rendered":"https:\/\/climatescience.press\/?p=261220"},"modified":"2023-06-08T12:45:07","modified_gmt":"2023-06-08T10:45:07","slug":"the-madness-of-labours-oil-and-gas-ban","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=261220","title":{"rendered":"The madness of Labour\u2019s oil and gas\u00a0ban"},"content":{"rendered":"\n
\"\"
CROMARTY, SCOTLAND – JANUARY 12: Oil rigs weighing thousands of tons are continuing to be stacked up in the Cromarty Firth on January 12, 2018 in Invergordon, Scotland. Rig platforms are being stacked up in the Cromarty Firth, awaiting orders to transport them to scrapyards, due to a lack of demand for their services following the North Sea oil downturn. (Photo by Jeff J Mitchell\/Getty Images)<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

From NOT A LOT OF PEOPLE KNOW THAT<\/a><\/p>\n\n\n\n

By Paul Homewood<\/p>\n\n\n\n

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This war on domestic fuel production would be catastrophic for ordinary Britons.<\/mark><\/strong><\/em><\/p>\n\n\n\n


It could almost be over for the UK\u2019s North Sea fossil-fuelled energy miracle. Despite it contributing over\u00a0<\/em>\u00a3350 billion to the exchequer<\/em><\/a>\u00a0since 1967, with a further\u00a0<\/em>\u00a310 billion forecast for 2023-24<\/em><\/a>, it seems a future Labour government wants to call time on the oil and gas industry.\u00a0<\/em>Keir Starmer<\/em><\/a>\u00a0confirmed last week that Labour would ban all new drilling licences in the North Sea.<\/em><\/p>\n\n\n\n


At a time when there is huge demand for reliable, secure sources of energy, and at a time when fossil-fuel industries are\u00a0<\/em>growing elsewhere in the world<\/em><\/a>, Labour wants to severely hobble the UK\u2019s oil and gas sector. This would be a colossal mistake.<\/em><\/p>\n\n\n\n


Labour would allow residual North Sea operations (over\u00a0<\/em>270 fields<\/em><\/a>) to linger on. But how much longer they\u2019ll be able to is anyone\u2019s guess. They are already threatened by the\u00a0<\/em>Tory government\u2019s windfall taxes<\/em><\/a>, which are locked in until 2028 and could\u00a0<\/em>rise even further<\/em><\/a>\u00a0should Labour win the next election. Meanwhile, expensive regulations like the \u2018<\/em>climate compatibility checkpoint<\/em><\/a>\u2019 will continue to cripple the oil sector, regardless of which party is in power. All this is prompting investors to turn away from the UK\u2019s fossil-fuel industries in their droves. And this, in turn, will threaten our energy supplies.<\/em><\/p>\n\n\n\n


Indeed, Labour\u2019s policy announcement alone could jeopardise the\u00a0<\/em>planned \u00a324 billion development<\/em><\/a>\u00a0of the Rosebank oil field, which the Tories are expected to approve. A ban on new activity will also lead to current infrastructure falling into disrepair. After all, no one will want to invest in pipes and rigs if they expect to have no new customers.<\/em><\/p>\n\n\n\n


Labour\u2019s attack on the fossil-fuel industry seems self-defeating at best. The UK remains between 75 and 80 per cent dependent on fossil fuels for our\u00a0<\/em>primary energy use<\/em><\/a>. While we are becoming slowly less reliant on fossil fuels, we are still likely to need them for at least a further 20 to 30 years. We could potentially use them for even longer while minimising the impact on the climate, if mitigation technologies like carbon capture, utilisation and storage (CCUS) are rolled out at scale. Indeed, the government has recently announced\u00a0<\/em>\u00a320 billion in funding<\/em><\/a>\u00a0for carbon-capture development.<\/em><\/p>\n\n\n\n


If Labour runs down our own fossil-fuel production, in order to meet demand, we will simply end up importing more oil and gas from outside the UK. This is why Labour\u2019s plan is not only economically reckless \u2013 it could also be bad for the environment, too. The emissions profile, for example, of tanker-imported liquefied natural gas (LNG) is\u00a0<\/em>more than double<\/em><\/a>\u00a0that of gas drilled here.<\/em><\/p>\n\n\n\n


Then consider the tax revenue lost from running down the oil and gas industry. This revenue could be invested in research and development (R&D) to reduce the cost of low-carbon technologies. But without it, the costs of R&D, not to mention the costs of importing energy from abroad, will be passed on to taxpayers. This will lead the cost of living to rise even higher, which would be catastrophic. Indeed,\u00a0<\/em>The Economist<\/em><\/a>\u00a0recently queried whether \u2018expensive energy may have killed more Europeans than Covid-19 last winter\u2019.<\/em><\/p>\n\n\n\n


Labour\u2019s policy announcement will no doubt have delighted Just Stop Oil and other climate catastrophists. But some of Labour\u2019s trade-union sponsors are less happy. The\u00a0<\/em>GMB<\/em><\/a>, which represents North Sea oil workers, is furious and is opposing the policy. It is extraordinary that a party that used to claim to represent workers is now blocking oil rigs and\u00a0<\/em>coal mines<\/em><\/a>, and is celebrating the destruction of highly paid unionised jobs in the UK\u2019s industrial heartlands.<\/em><\/p>\n\n\n\n


Labour argues its energy policy is supported by the International Energy Agency (IEA) and its\u00a0<\/em>2021 \u2018roadmap\u2019 to Net Zero<\/em><\/a>. The IEA (not to be confused with the Institute of Economic Affairs, where I work) has certainly provided a veneer of justification for \u2018leave it in the ground\u2019 policies of the type being pursued by Labour. But this is largely because the IEA reflects back to politicians their own Net Zero thinking. Its \u2018roadmap\u2019 is, above all, a product of green ideology.<\/em><\/p>\n\n\n\n


What about renewable energy? Replacing fossil fuels with renewable sources is far more difficult than Labour is willing to admit. The UK\u2019s renewables sector is hardly a success story. The government is still paying \u00a34 billion in subsidies every year to support the wind industry, some two decades after it first started throwing money at it. And we don\u2019t currently have serious domestic solar, hydrogen or battery industries. There are plenty of jobs in green NGOs, think-tanks and pressure groups selling the \u2018growth opportunities\u2019 of Net Zero to gullible politicians. But\u00a0<\/em>very few jobs<\/em><\/a>\u00a0have actually been created in Britain\u2019s green sector, despite all the state support it has received.<\/em><\/p>\n\n\n\n


Labour is effectively pledging to destroy real jobs and a real industry, while virtue-signalling about future tech that will take decades to mature. The ultimate beneficiaries of this self-destructive energy policy will be the US fracking industry, the Arab petrostates and perhaps even Russia \u2013 whom we will have to rely on to import our energy supplies.<\/em><\/p>\n\n\n\n

Full post<\/em><\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This war on domestic fuel production would be catastrophic for ordinary Britons.<\/p>\n","protected":false},"author":121246920,"featured_media":261225,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691819423,691818154,691818610,691820054],"class_list":["post-261220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-lng","tag-net-zero","tag-north-sea","tag-north-sea-fossil-fuell","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0oil-1536x864-1.jpg?fit=1536%2C864&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-15Xe","jetpack-related-posts":[{"id":365194,"url":"https:\/\/climatescience.press\/?p=365194","url_meta":{"origin":261220,"position":0},"title":"First Hydrogen CfDs\u00a0Awarded","author":"uwe.roland.gross","date":"02\/06\/2025","format":false,"excerpt":"The first three CfDs have been announced for the Hydrogen Allocation Round 1.","rel":"","context":"In \"CFDs\"","block_context":{"text":"CFDs","link":"https:\/\/climatescience.press\/?tag=cfds"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0AdobeStock_210211160.jpeg?fit=1200%2C801&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0AdobeStock_210211160.jpeg?fit=1200%2C801&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0AdobeStock_210211160.jpeg?fit=1200%2C801&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0AdobeStock_210211160.jpeg?fit=1200%2C801&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/0AdobeStock_210211160.jpeg?fit=1200%2C801&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":315957,"url":"https:\/\/climatescience.press\/?p=315957","url_meta":{"origin":261220,"position":1},"title":"UK To Force \u201cGreen\u201d Energy on North Sea Oil & Gas Platforms","author":"uwe.roland.gross","date":"04\/03\/2024","format":false,"excerpt":"North Sea Transition Authority targets 2030 deadline to design platforms for green energy solution","rel":"","context":"In \"CO2\"","block_context":{"text":"CO2","link":"https:\/\/climatescience.press\/?tag=co2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/04\/08277b302fc6987af210cad56eabef48a.jpg?fit=1200%2C596&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/04\/08277b302fc6987af210cad56eabef48a.jpg?fit=1200%2C596&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/04\/08277b302fc6987af210cad56eabef48a.jpg?fit=1200%2C596&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/04\/08277b302fc6987af210cad56eabef48a.jpg?fit=1200%2C596&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/04\/08277b302fc6987af210cad56eabef48a.jpg?fit=1200%2C596&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":315167,"url":"https:\/\/climatescience.press\/?p=315167","url_meta":{"origin":261220,"position":2},"title":"North Sea oil rigs threatened with shutdown unless they start running on green electricity","author":"uwe.roland.gross","date":"03\/30\/2024","format":false,"excerpt":"Changes could force operators to build wind farms close to each platform. 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