Miliband to bow to pressure on North Sea drilling
Energy secretary Ed Miliband is poised to bow to significant pressure to allow drilling in the North Sea to counter collapsing fuel supply chains and soaring energy costs.
Miliband is planning to give the green light to the Jackdaw gasfield, which could supply gas to more than a million homes this winter.
This would be the first green light for a North Sea drilling project in almost a decade, as the Iran war provokes concerns around the UK’s energy security.
The government has been facing intense pressure from energy bosses, manufacturers and the political opposition to increase the domestic production of oil and gas, as the Iran war threatens to spike bills for households and businesses.
Household energy bills to rise
Household energy bills are expected to leap by 18 per cent after June, as energy consultancy firm Cornwall Insight forecasts the price cap to jump by £288.
The Jackdaw gasfield has been in limbo since 2024, when the High Court ruled that its existing license was invalid because it had understated its carbon footprint.
The energy secretary is not expected to make a final decision before May’s local elections, which will also include Scottish parliament elections.
The project is currently being assessed by the Offshore Petroleum Regulator for Environment and Decommissioning.
Facing calls to explore North Sea drilling earlier this month, Prime Minister Keir Starmer said he doesn’t have the power to approve projects, and that this responsibility lies solely with Miliband.
The energy secretary had previously rejected calls to reopen oil and gas drilling in the region.
Thousands of manufacturers had called on Miliband to approve North Sea drilling to prevent spiking energy costs, and Octopus Energy boss Greg Jackson said the government must ditch “wishful thinking” on energy.
Labour energy policy is ‘revenge economics’
Enetrepeneur Sir James Dyson has become the latest high-profile figure to pile pressure on the energy secretary, writing in The Times that the government has adopted “revenge economics”.
“Sir Keir Starmer talks about acting in Britain’s national interest but is pursuing policies that force us to depend on unreliable imports for our most vital resources: energy and food,” he said.
Miliband no longer considers drilling for gas in Jackdaw to be incompatible with his net zero ambitions, according to reports.
But the energy secretary remains opposed to exploiting oil reserves in the Rosebank field.
He has previously said fracking in Rosebank would be an act of “climate vandalism”.
The Conservative Party have pledged to scrap carbon taxes, in a move which they say would save UK refineries and businesses millions of pounds.
Ineos chief Sir Jim Ratcliffle backed the policy on Thursday, having previously said the Emissions Trading Scheme (ETS) is “killing manufacturing”.