Scottish Conservatives criticise Labour energy bill over North Sea exploration ban

The Scottish Conservatives have launched a sharp attack on the Labour government’s new Energy Independence Bill, describing the legislation as a threat to national energy security and economic stability. The party’s criticism centres on the Bill’s commitment to end fresh licences for the exploration of new oil and gas fields, a move they argue will accelerate the decline of domestic production in the North Sea. While the government has introduced transitional energy certificates to allow for some continued activity, opposition figures contend that these measures are insufficient to offset the broader ban on new exploration.

The Bill includes provisions for transitional energy certificates, which the government states will enable companies to exploit oil and gas on blocks of acreage that are part of, or adjacent to, existing fields linked by a tieback. According to official announcements, these measures could unlock approximately 60 million barrels of oil. However, Douglas Lumsden, the MP for Aberdeen South, dismissed the initiative as a form of national self-harm. He argued that the combination of the exploration ban and the retention of the Energy Profits Levy is driving firms to relocate jobs and investment to other jurisdictions, such as Norway. Lumsden highlighted the recent exit of BP from the North Sea as evidence of this trend, asserting that the political stance of both Labour and the SNP is pushing up consumer bills and compromising security.

Lumsden further cited the escalating crisis in the Middle East as a compelling reason to prioritise domestic extraction over reliance on foreign imports. He urged Energy Secretary Andy Burnham to approve the Rosebank project and repeal the Energy Profits Levy to protect employment and investment in Aberdeen. Harriet Cross, the Shadow Secretary of State for Scotland, echoed these concerns in a post on LinkedIn. She described the Bill as detrimental to jobs, skills, supply chains, and investment. Cross argued that the legislation would increase reliance on imports, contradicting Labour’s recent statements regarding the importance of domestic supplies following the approval of the Jackdaw project. She maintained that the tie-back provisions do not allow for new exploration and have limited criteria, failing to mitigate the impacts of the wider ban.

In response to the criticism, Energy Secretary Miatta Fahnbulleh defended the legislation. She characterised the Bill as a first down payment on fixing a broken system, with the aim of protecting consumers from unfair costs and putting the public back in control. The government maintains that the balance of measures, including the transitional certificates, represents a necessary step towards energy independence, even as it moves to restrict new exploration activities in the North Sea.