Energy executives have urged the Government to prioritise North Sea oil, as experts warned the Iran conflict meant “we need to maximise production of every resource we have”.
Trade body Offshore Energies UK (OEUK) held emergency talks with industry leaders to call for a co-ordinated response to the escalating crisis.
The meeting, which was attended by executives from major energy companies active in the North Sea, heard that, apart from Denmark, “the UK was the only country in the world that’s cutting back on its potential oil and gas production”.
The OEUK said it was “urging the immediate prioritisation of domestic energy production – that is North Sea oil and gas, as well as renewables”.
The meeting followed news the Government had delayed sanctions on Russian crude oil to allow for the import of jet fuel and diesel refined in third countries amid surging costs.
Sir Keir Starmer said the Government is not lifting sanctions on Russia “in any way whatsoever”.
He said it was introducing new measures but had issued two short-term licences to phase in these new sanctions.
Energy experts agreed new sanctions have come in on Russia, but said they have been watered down by the licences announced at the last minute.
Energy executives have told Labour to prioritise North Sea oil
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Professor Nick Butler, who served as a senior policy advisor to Prime Minister Gordon Brown, gave a presentation to the OEUK meeting.
The visiting professor at Kings College, London, said problems flowing from the war included higher inflation, increased borrowing, slower growth, weaker spending and worsening pressure on public finances.
He said: “We are the only country in the world that’s cutting back on its potential oil and gas production, apart from Denmark.
“I cannot see the moral, economic or environmental reason for importing oil and gas when we can produce it ourselves.
“In the face of this current crisis we need to maximise production of every resource we have.”
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David Whitehouse, chief executive of the OEUK, said: “The evidence we have heard at this morning’s meeting makes clearer than ever the need to prioritise homegrown energy over imports, and that includes our own oil and gas.
“The Government must support our own producers, industries and workers.”
Speaking separately, Russell Borthwick, chief executive of the Aberdeen & Grampian Chamber of Commerce, said: “The North Sea is being prematurely closed down while our near neighbours in Norway pillage their side of the line and sell our oil and gas back to us.”
He added: “This misplaced and flawed ideology is destroying jobs, communities and the UK economy while adding to global carbon emissions.”
The visiting professor at Kings College, London, said problems flowing from the war included higher inflation, increased borrowing, slower growth, weaker spending and worsening pressure on public finances
|PA
Speaking in Parliament, Sir Keir insisted the UK had introduced strong new sanctions against Russia.
He said: “What we announced yesterday was a strong new package of new sanctions going well beyond existing sanctions, so it is a new package.
“This includes new bans on maritime services on LNG and new bans on refined oil products from Russia.
“We also issued two targeted short-term licenses to phase the new sanctions in and to protect UK consumers. That is standard practice.
“This Government has phased in sanctions in this way before and the last Government used exactly the same technique when they introduced sanctions.
“And when they did so, we supported them because we could see the sanctions were the right thing to do to bear down on Russia.
“So, these are new sanctions being phased in. This is not a question of lifting existing sanctions in any way whatsoever, and we will continue to work with our allies on further sanction packages.”
Downing Street insisted a trade licence allowing for the import of jet fuel and diesel refined in third countries would be “temporary and reviewed regularly”.
There are “limited carve-outs” to protect markets which will be “phased out over time”, Sir Keir Starmer’s official spokesman said.
No10 would not say by when the measures might be phased out.
The spokesman said: “The licences are temporary and reviewed regularly.”