INEOS urges government to restart North Sea drilling

The chemical group INEOS has called on the Labour government to reopen the North Sea for new drilling operations. The company, founded by billionaire Jim Ratcliffe in 1998, argues that current energy policies fail to address the specific needs of industries that rely heavily on gas rather than electricity.

This criticism follows the recent launch of the British Industrial Competitiveness scheme, which allows manufacturing firms to apply for electricity cost reductions of up to 25 per cent. The initiative, first announced in June 2025, opened for applications on Thursday as part of a broader modern industrial strategy intended to support economic growth. Business Secretary Jonathan Reynolds stated that the scheme would help companies reduce energy expenditure and reinvest in business growth.

However, INEOS described the government’s approach as a fundamental misunderstanding of industrial requirements amid rising fuel prices. UK natural gas prices have increased significantly, reaching eight times the level of US prices over the past two weeks. Domestic costs have hovered at 18 pence per unit, compared with 2.19 pence in North America. An INEOS spokesperson warned that this disparity is damaging the manufacturing base, threatening skilled employment, and increasing reliance on carbon-intensive imports.

The petrochemicals giant reiterated its demand for the government to lift restrictions on North Sea drilling. It specifically urged approval for the Jackdaw and Rosebank oil fields to strengthen energy independence. The company also called for fiscal relief through reduced carbon costs and accelerated safeguards against unfair imports. Ratcliffe has previously criticised the hesitation to approve these projects, describing the lack of investment in domestic energy as insanity and warning of potential gas shortages this winter.