Tories Pledge to Make North Sea Oil and Gas "Cornerstone" of Economy

Strategic Insights -

Kemi Badenoch has pledged that a Conservative government would make North Sea oil and gas the "cornerstone" of the economy, reversing Labour's "ban" on new oil and gas licences and reversal of a ban on providing financial support for the fossil fuel energy sector overseas. The Tory leader will say that Labour sees the North Sea as a "relic of the past" while her party sees it as a cornerstone of Britain's future. The announcement comes as key figures from the oil and gas sector gather at the Society of Petroleum Engineers Offshore Europe conference in Aberdeen.

Key Takeaways:

  • The Conservative Party has pledged to reverse Labour's "ban" on new oil and gas licences, allowing exploration work and extraction of oil and gas.
  • Kemi Badenoch has announced plans to rename the North Sea Transition Authority to the North Sea Authority, with an overarching mandate to "maximise the extraction of our oil and gas".
  • The party intends to reverse a ban on providing "financial or promotional support for the fossil fuel energy sector overseas", allowing work to promote the UK's oil and gas sector and its technology abroad.
  • Labour's Energy Secretary Ed Miliband has been accused by Kemi Badenoch of "strangling the North Sea in his dogmatic and ideological pursuit of net zero" by 2050.
  • The Tories aim to secure jobs, investment, and energy independence through a focus on securing cheap, abundant energy.
  • Offshore Energies UK estimates that the UK will need between 10 billion and 15 billion barrels of oil and gas between now and 2050 to meet net zero targets.
  • The UK is currently on course to produce less than four billion barrels from the North Sea, but a more realistic target of six to seven billion barrels of oil and gas is deemed achievable.

Statistics:

  • Exposure of the UK's need for between 10 billion and 15 billion barrels of oil and gas by 2050 to meet net zero targets (Offshore Energies UK)
  • Current production levels of less than four billion barrels from the North Sea (Offshore Energies UK)
  • Realistic target of six to seven billion barrels of oil and gas (Offshore Energies UK)
  • Proposed increase in energy independence through a focus on securing cheap, abundant energy (Conservative Party)
  • Estimated 6 billion to 7 billion barrels of oil and gas attainable through the right policies (Offshore Energies UK)

Sources:

  • Tory leader Kemi Badenoch's speech at the Society of Petroleum Engineers Offshore Europe conference
  • Offshore Energies UK, via chief executive David Whitehouse
  • Conservative Party policy announcements