Dale Vince, a significant donor to the Labour Party and a proponent of green energy, has reversed his opposition to new oil and gas fields in the North Sea, arguing that price controls on wholesale energy could make projects like the Rosebank and Jackdaw fields economically beneficial.
Vince, founder of Ecotricity, told Andy Burnham, who is under pressure to approve the fields, that implementing price controls on North Sea energy could lead to significant cost savings for the country. He stated that under the current global market system, the UK pays global prices regardless of domestic production. By controlling prices, he believes the country could save money, making the development of these fields more sensible.
"There's a way that we can make sense of this North Sea puzzle. We can actually bring our bills down, which we can't at the moment unless we do this one thing, which is price control the North Sea," Vince said in an interview with BBC Newsnight. He added that if wholesale energy prices were controlled, it would pave the way for projects like Rosebank and Jackdaw, as existing licensed sites could then be developed more affordably.
The Rosebank field is described as the UK's largest remaining untapped oil field, located approximately 80 miles west of Shetland. The Jackdaw gas field, situated 150 miles east of Aberdeen, has been identified as a potential mitigator of fuel shortages this winter.
Vince, who has previously donated over £6 million to Labour through his company, suggested that if the UK is to continue using fossil fuels, it makes more sense to produce them domestically rather than import them, especially if cost savings can be achieved and jobs created.
He also emphasized the importance of not abandoning Labour's Net Zero commitments. Vince proposed that savings generated from price controls on existing North Sea production, estimated at £10 billion annually, could be used to establish a fund for decommissioning costs, which he noted currently lack government responsibility.
Burnham has indicated a pragmatic approach to the future of North Sea drilling. Labour's manifesto includes a ban on new oil and gas licenses, a policy originally implemented by Ed Miliband. However, approving Rosebank and Jackdaw, which were granted initial consent by the Conservative government before being withdrawn due to a court ruling, might not be seen as a direct breach of the manifesto pledge, as no new licenses would be issued. The final decision on these fields rests with Burnham and Energy Secretary Miatta Fahnbulleh.