Ed Miliband told to open up the North Sea by UK manufacturers or ‘risk accelerating de-industrialisation’

The field is estimated to contain between 300 million and 500 million barrels of oil. It also wants Mr Miliband to green light production at Jackdaw, a gas field east of Aberdeen.

Make UK Chief Executive Stephen Phipson said: “Ensuring the UK has access to its own energy reserves is now vital.” Permission to drill both sites had been granted under the Conservatives, but the decisions were overturned by the Scottish Court of Session, on environmental grounds.

Both now require fresh environmental assessments which must be signed off by the government.

Mr Phipson’s call comes as the Iran war continues to play havoc with the oil markets, sending costs soaring across the world.

Mr Phipson said that industrial power prices in the UK are already the highest in Europe, four times higher than the US and 46 per cent above the global average.

These come on top of a “pile up of commercial burdens”, including hefty employment costs and rising business rates, the organisation says.

It points out that the costs of business were rising before the Middle East conflict and warns the war is “another price shock that will threaten the long-term viability of British manufacturing. “Drastic action is required to avoid de-industrialistion.”

Mr Phipson said: “Manufacturers are calling for the government to act quickly to progress with the Rosebank and Jackdaw developments to mitigate energy costs and energy security because of the conflict in the Middle East. Historically high industrial energy costs are already preventing growth in UK manufacturing.

"The recent developments in the Middle East add huge pressures to the sector and risk accelerating de-industrialisation.

“Whilst manufacturers are leading the way in renewable energy we must ensure the sector survives in the medium term.

“Ensuring the UK has access to its own energy reserves is now vital."

Progressing work on the fields would “help safeguard energy security and mitigate rising energy costs”, Make UK says, adding “we believe that progressing Roesbank and Jackdaw is the only viable short-term solution”.

Mr Phipson points out that manufacturers “remain committed to the value of net zero” and said the push to progress oil and gas drilling “must be understood within the context of the current crisis”.

Make UK, which represents some 20,000 companies, warned: “Without decisive action to tackle the UK’s industrial energy cost disadvantage there is a real risk that rising costs could accelerate de-industrialisation.

“This would undermine investment, weaken our industrial capacity and ultimately erode the manufacturing base that underpins the UK’s national security.”

Earlier this week, Ineos boss Sir Jim Ratcliffe called for both North Sea schemes to be permitted. He said: “Projects such as Jackdaw and Rosebank could provide secure domestic supply for decades.

“Approving them would send a signal that Britain is serious about energy security.”

But clean energy campaigners Uplift said opening up Rosebank would do nothing to lower costs for consumers. Tessa Khan, the executive director at Uplift, said: “If the conflict in Iran and soaring oil prices isn’t enough to remind us of the financial pain from remaining hooked on fossil fuels, Rosebank is a rotten deal for the UK.

“The rig was made in Dubai, not Scotland. The oil belongs in part to the Norwegians, who will take most of the profits. “It will do nothing to lower energy bills – it is predominantly oil for export – and the tiny amount of gas it contains is enough to reduce the UK’s import dependency by just 1pc. It is oil for profit, at our expense.”

Unite, one of the biggest unions in the UK, said blocking North Sea production was “simply an act of monumental political self-harm".

It also joined calls to give the immediate go-ahead to the development of both Rosebank and Jackdaw. The union represents thousands of oil and gas workers.

General secretary Sharon Graham said: “The government’s position on oil and gas is putting jobs and national security at risk. “Blocking oil and gas production in the North Sea, especially now is simply an act of monumental political self-harm.

“Domestic gas from Jackdaw and oil from Rosebank are essential for jobs and for energy security. “We cannot let go of one rope before we have hold of another. With energy and fuel bills set to rocket once again we need to stop offshoring our carbon responsibilities and fund a concrete plan for commensurate jobs.”

The Department of Energy Security and Net Zero said: “Our priority is to deliver a fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations, which drives our clean energy future of energy security, lower bills, and good long-term jobs.”