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    Politics

    Industry sources warn new oil field 'in doubt' over Labor's proposed ban

    Sir Keir Starmer Plans to Complete New Fossil Fuel Projects Photo: Ewan Cherry/PA

    Major Oil Drilling Project in the North Sources The industry is arguing that the £24bn offshore economy could be shut down after Labor announced it would suspend all new drilling licenses if it wins the next election.

    Sir Keir Starmer's plan to phase out new fossil fuels The projects 'pose a real risk to UK energy security today' as Britain's increasing dependence on imports, insiders say amid doubts about the future of the Rosebank oil field.

    Though Labor promised to keep all projects that have already been approved, it is understandable that low investor confidence, rising interest rates and fears about future policy changes could nullify plans to start drilling before the next election.

    Energy Minister Grant Shapps is expected to announce his decision to allow drilling at the new Rosebank oil field in the coming weeks.

    Rishi Sunak has already suggested that the project is likely to be implemented in an attempt to bolster the UK's energy security by reducing oil and gas imports.

    Speeding up the economy

    Norwegian company Equinor's discovery of a field for commercial drilling could bring £24bn to the British economy.

    But a source told The Telegraph that the project could now be under threat.

    “If Labor comes and says no more, licensing, the North Sea will turn from an oil and gas industry to a decommissioning industry,” they said.

    “This is due to political uncertainty. If you're going to change your contracts or change your taxes because of any climate compatibility clause, that will increase the cost of the loan.”

    Black gold 2904, north sea

    Another source in a major producer in the North Sea. said the announcement, expected as part of Sir Keir's “climate mission” this week, would have “immediate impact”; about investor confidence.

    “The signal that there will be no more licenses for oil and gas affects not only the long-term environment, but also the short-term one. The financing of the existing production will stop immediately.

    "This Labor rhetoric undermines investor confidence. This poses a real danger to the UK's energy security today – let alone 10 years from now. time."

    Last Licensing Round

    The source added that the results of the North Sea Crossing Authority's latest licensing round are expected in the coming months, but some companies may now refuse applications to be forwarded even if they are successful.

    The government has said it will continue to support and encourage drilling in the North Sea to attract investment to the UK and increase domestic supply until clean energy can meet demand.

    Mr Shapps said the plan Labor to accelerate transition through licenses will reduce energy security and support Vladimir Putin's efforts to use energy supply as a “weapon”.

    “At the height of high energy prices for families, Labor’s ideological vendetta against UK energy independence is not only endangering hundreds of thousands of jobs, but is intensifying Putin’s campaign to use energy as a weapon against the West. “, he said.

    Labor's plans

    But John Ashworth, secretary of shadow work and pensions, said the policy was not about “closing what's happening in the moment” but rather to ensure “sustainable” managing current developments.

    He told Sky News: “We know we need to move to more renewable energy sources.” sources of energy, it's important to our climate change commitment, but it's also a way we can lower our energy bills for consumers.

    David Whitehouse, CEO of Offshore Energies UK, said: “ People will not forgive anyone who shuts down the British oil and gas industry only to replace it with foreign oil and gas imports.”

    “It is clear to everyone that the energy system must change, but business and government must do it in partnership . Labor's approach risks sending the wrong signals.”

    Equinor did not respond to a request for comment.

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