"New oil and gas licences will not lower energy bills. Labour must stand firm."

The North Sea is a maturing basin—its geology cannot be changed. Most of the UK’s remaining resources in the North Sea are oil, and much of it is exported. Even if the remaining natural gas were extracted, it would not alter the fact that the UK will remain dependent on imported gas by 2050—even with new developments. With limited output, exhausting North Sea resources would have no impact on global prices, meaning the UK will always be a price taker, not a price setter. Projects like Rosebank—illegally approved by the Rishi Sunak government—are a bad deal for the UK. Extracting from this site will have no effect on energy prices. Trade union leaders have denounced the development as "a betrayal of Scottish workers", because the drilling platform is being built in Dubai—not Scotland. To make matters worse, the main beneficiaries will be Shell and Norwegians—since Equinor (the Norwegian state-owned oil company) owns the field and stands to reap substantial profits. All this occurs after UK taxpayers have shouldered most of the development costs through massive tax breaks. Whenever an energy crisis hits, the Conservatives and Reform UK routinely respond by expanding domestic oil and gas production. The last time they fixated on this, it was not the solution to lowering bills—and inevitably, the next time they resort to the same tactic, it will not be either. Their energy policy is not designed to reduce bills, stimulate economic growth, or secure UK energy independence. Instead, they act as cheerleaders for oil companies profiting handsomely—having earned nearly $500 billion since Russia’s illegal invasion of Ukraine. Given the financial ties between these two parties and fossil fuel companies—and climate change deniers—this is hardly surprising. "Look around the world" The UK does not possess abundant oil and gas reserves like the US or Norway. But the UK Labour Party is not alone. Other countries with maturing basins are actively pursuing an orderly phase-out of domestic oil and gas production. Denmark—the UK’s neighbour in the North Sea, recently misrepresented and mischaracterised by right-wing commentators—remains committed to phasing out oil and gas production by 2050. Colombia, which produces roughly the same volume as the UK, has already stopped issuing new extraction licences.

Labour’s UK Energy vs Conservative Cost Concerns

Labour’s UK Energy plan aims to cut electricity bills through green energy, while Rishi Sunak stresses the Conservatives’ commitment to energy security—without requiring costly home upgrades. Labour has announced plans to establish Great British Energy—a publicly owned company—if the party wins the next election—designed to produce clean energy domestically. This initiative forms part of Labour’s “Six Steps to Change” campaign launched in Wales, with energy reform as its fourth pillar. Labour says the new company will lower energy costs and tackle the cost-of-living crisis through large-scale investment in renewable energy. The party criticises the current government’s previous cuts to renewable energy investment, arguing that these decisions left the UK vulnerable to volatility in global fossil fuel markets—especially following the invasion of Ukraine. Great British Energy’s headquarters will be located in Scotland, and its funding will come from a windfall tax on major oil and gas companies—expected to raise £8.3 billion over five years.

Labour Is Still Searching for an Energy Fix for a New World

1 day ago

UK Labour government announced £100 energy bill support amid rising gas prices impacting GDP. Chancellor Healey pledged deep energy system reforms and prioritized cheaper clean power to reduce dependency on international markets.

theguardian

2026-10-29

Labour Is Still Searching for an Energy Fix for a New World

Labour Is Still Searching for an Energy Fix for a New World

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