Labour urged to expedite North Sea drilling decision to secure winter gas supplies
Labour has been urged to speed up its decision on North Sea drilling to avoid affecting gas supplies this winter, reports BritPanorama.
Ministers have been alerted by industry stakeholders that the Jackdaw gas field is an “important component” for the UK but requires urgent approval to proceed.
More than 100 projects could be initiated if ministers adjust the tax regime and licensing regulations, potentially unlocking £50 billion in investment. However, the Jackdaw decision is now likely to follow the October 8 by-election, where Labour is contending with the Green Party for Sir Keir Starmer’s former seat.
David Whitehouse, chief executive of Offshore Energies UK, emphasized the urgency, stating: “Jackdaw is an important component of our gas delivery for the winter period 2026-27.” He added that the field has the capacity to produce up to 6% of the gas needed and warned that any delay in regulatory approval would postpone its production.
“We’re now at a point where further delays are going to push back bringing that production online,” Whitehouse noted, advocating for decisions that signal the UK’s commitment to increasing its energy production.
The organization highlighted that over 100 new oil and gas projects could be approved if the government modifies the energy tax regime and licensing frameworks. The sector is calling for reforms to the Energy Profits Levy in the early months of next year, alongside new regulations to enhance domestic energy supplies.
Without these changes, Whitehouse cautioned that the “consequences are clear.” He stated: “We will continue to see the loss of jobs in the UK; we will continue to see significant, increasing imports of our energy; the country will become less resilient.”
Additionally, the Offshore Energies UK noted that Europe’s gas storage levels are at a five-year low, which may lead to sustained high gas prices in both Europe and the UK this winter.
This situation highlights the delicate balance facing the UK government as it navigates energy security and political considerations amid a changing environmental landscape.
