Ed Miliband rejects ‘totally false’ calls to drill North Sea
Ed Miliband has dismissed calls for the UK to exploit the North Sea’s oil supply, despite widespread calls to drill the area as fears of an energy shock rise amidst the war in the Middle East.
The energy secretary said: “Some people want to go around and pretend that if we only we draw more [oil and gas from the North Sea,] prices would go down. That is totally false.”
It comes after the industry body representing thousands of manufacturers, Make UK, released a statement urging Miliband to give the green light for North Sea drilling or risk a spike in energy costs.
Greg Jackson, the boss of energy giant Octopus, has also weighed in warning of “economic damage” from the unfolding crisis in the gulf.
Jackson, who is also a member of the government’s industrial strategy advisory council, wrote in the Telegraph earlier this month that the government must ditch “wishful thinking” and “ideology” in order to keep prices stable and the economy afloat.
The spiking price of oil – which settled above $103 this week – has been driven by Iran’s blocking of the Strait of Hormuz. The strait is a narrow waterway in which a fifth of the world’s oil supply flows through.
Miliband told Sky News on Sunday: “[The government wants to] work with our allies to get the Strait reopened
“There are a range of things that we can do, including autonomous mine hunting equipment. And that’s something we’re obviously looking at.”
The UK’s reluctance to drill in the North Sea has even garnered criticism from President Trump, who launched an attack during his fiery speech at Davos earlier this year.
“The UK produces one third of the total energy from all sources that it did in 1999,” Trump said at the World Economic Forumn.
“They are sitting on top of North Sea oil, one of the greatest reserves anywhere in the world”
Miliband hits out at ‘price gouging’
Rachel Reeves is tipped to release a support package for poorer households in the form of an energy subsidy package.
The Chancellor told the Times she “found the money” to announce a support package for people not supported by the energy price cap, including rural communities which use heating oil, as she hinted at different tiers of support.
Speaking about a “targeted” programme, Reeves said: “When I came in, there was no money left. Interest rates were too high. Our borrowing costs were too high. They were much higher than other countries and they were not coming down. It’s taken a year and a half to get us into that better place.”
Miliband has said the government will “fight people’s corner” and has hit out at “price gouging” at petrol stations.
Earlier this week, petrol retailers threatened to pull out of a meeting in No.11 Downing Street after claiming the government’s warnings against “price gouging” had led to forecourt staff being abused.
It came after Miliband issued a stern warning against price “rip-offs” which could see retailers use the war in Iran to justify hiking prices.
Reeves has also instructed the UK’s competition watchdog to crack down on any companies “exploiting the current situation to make excess profits at consumers’ expense”.
Gordon Balmer, the Petrol Retailer’s Association executive director, said: “Our members are working hard in difficult circumstances making sure that motorists and businesses are getting the fuel they need, at prices that are very competitive, on razor thin or in some cases negative margins which means they are losing money.
“There is clearly still a lot of work to do to help politicians and commentators to understand how the fuel market works and our door is always open for constructive dialogue.”