Ed Miliband is preparing to ‘cry betrayal’ if the Government U-turns over North Sea oil and gas, it has been claimed.
The Energy Secretary has banned new exploration of the North Sea as he pursues his Net Zero agenda.
But in the wake of the Iran war and soaring energy prices, Mr Miliband is facing mounting pressure to soften his stance over the UK’s untapped fossil fuel reserves.
A growing number of Labour MPs are calling on him to allow new drilling, while it has emerged that Chancellor Rachel Reeves also wants to boost North Sea production.
It was recently reported that Mr Miliband could be minded to approve a project at Jackdaw, a major gas field off the coast of Aberdeen.
His department dismissed the speculation as ‘incorrect’ and insisted no decisions had yet been made.
But The Times has now reported that the Government is heading for a ‘compromise’ that could allow for fresh exploration of untapped fields.
One source supportive of Britain exploiting more resources in the North Sea told the newspaper: ‘I think, like a lot of Government decisions, we will get to a compromise that they will leave too late to get credit for.
Ed Miliband is preparing to ‘cry betrayal’ if the Government U-turns over North Sea oil and gas, it has been claimed
The Energy Secretary has banned new exploration of the North Sea as he pursues his Net Zero agenda
They added: ‘But Miliband is winding his people up into overdrive to try and stop it, and cry betrayal after it happens.’
Scottish Labour leader Anas Sarwar supports drilling at both the Jackdaw site and a project at the Rosebank oil field north-west of Shetland.
Ms Reeves has said she would be ‘very happy’ to support drilling at Jackdaw and Rosebank because of the positive impact on ‘jobs and tax revenue’.
Henry Tufnell, Labour MP for Mid and South Pembrokeshire, has been spearheading a backbench campaign for the Government to issue new North Sea licences.
He said drilling was ‘vital for our own domestic energy security and is good for the economy with increased tax receipts and jobs’.
The SNP, Tony Blair’s think tank and the Labour-backing GMB union have also voiced support.
But one Labour MP told The i Paper there are more than 50 environmentally-minded backbenchers who will fiercely oppose a softening of the party’s stance on oil and gas.
‘There’s over 50 backbench MPs – and we know what the size of things need to be in order to give the leadership pause – who are saying: “Remember all the reasons why drilling for oil and gas puts you on a hiding to nothing”,’ they said.
Green industrialist Dale Vince, one of Labour’s biggest donors, told Times Radio it would be ‘wrong’ for Labour to allow fresh North Sea exploration.
A Government spokesperson said: ‘Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills.
‘Regardless of where it comes from, oil and gas is sold on international markets, which set the price for British billpayers – making us a price taker.
‘The only way to truly protect ourselves from these price spikes is to get off the rollercoaster of fossil fuel markets.’