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The energy secretary has declared all-out war on fossil fuels, slamming the brakes on North Sea oil and gas production.
He’s rejected new drilling licences and pushed ahead with policies that will cost the UK billions in lost tax, jobs and growth.
He claims it’s necessary to save the planet. It isn’t. We can’t build enough wind and solar capacity to meet demand by 2030.
We’ll still need oil and gas for decades.
Rather than backing secure homegrown energy, Miliband is forcing Britain to rely on volatile imports.
Just last week, British Gas-owner Centrica committed £20billion to buying Norwegian gas, while we shut down domestic production.
This hurts the planet as well as the economy. Imported fuels generate more emissions, due to the energy used to transport them.
Domestic industry is crumbling as our energy costs are the highest in the developed world.
Grangemouth, Scotland’s last oil refinery, is closing. Aberdeen’s oil sector is dying. Steelworks and car factories are vanishing under the weight of sky-high energy bills.
During the election, Labour claimed its net zero push will cut bills by £300 a year. Instead, households could end up paying £900 more.
This is economic self-harm on an epic scale. And it’s about to get worse.
Just weeks ago, oil was trading below $65 a barrel. But the Israel-Iran conflict has upended everything.
As the two countries blast away, the oil price is climbing fast.
JP Morgan now warns they could hit $130 if Iran follows through on threats to close the Strait of Hormuz, a chokepoint for one-fifth of the world’s oil.
That would trigger a global oil price shock, which would hit countries dependent on imported energy hardest of all. Thanks to Miliband, Britain is right on the front line.
It didn’t have to be this way.
Offshore Energies UK says the North Sea could still meet half our oil and gas needs through to 2050. That’s seven billion barrels and £150billion for the UK economy.
But Labour’s licence ban means we’ll be forced to import instead. At greater cost and with a far bigger carbon footprint.
This was a policy choice. And it’s a catastrophic one.
Miliband’s refusal to drill isn’t just economically reckless, it’s strategically dangerous. If oil prices surge, there’s no cushion.
When Vladimir Putin’s Russia invaded Ukraine the oil price soared war hit, North Sea producers handed the Treasury nearly £10billion in extra tax on their profits. That was up almost fourfold from £2.6billion.
The taxman won’t get that windfall now.
Worse, shutting down production won’t cut global emissions. It will increase them. All we are doing is exporting them to other countries.
Imported liquefied natural gas from countries like Qatar can be up to 10 times more polluting than piped North Sea gas.
Boosting domestic renewables is wise. In the longer run, it could boost energy security. Britain needs both oil and gas to manage the transition.
But Miliband is throwing out one before the other is ready.
At a time of crisis, he’s left Britain exposed. And there’s no sign he plans to change course. If Iran blocks the Strait of Hormuz, the cost to Britain will be stratospheric.
