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Labour frontbench invited to Aberdeen after Starmer rules out oil investment

The Aberdeen and Grampian Chamber of Commerce accused the Labour leader of misunderstanding the energy transition.

Craig Paton
Friday 20 January 2023 10:09 GMT
Sir Keir Starmer said a Labour government would not invest in new oil and gas (PA)
Sir Keir Starmer said a Labour government would not invest in new oil and gas (PA) (PA Wire)

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Labour’s frontbench has been invited to Aberdeen to receive a “balanced view” on the energy transition, after leader Sir Keir Starmer said the party would not invest in new oil and gas if in government.

Speaking at the World Economic Forum in Davos, Switzerland, on Thursday, the Labour leader called for a “clean power alliance”, which he described as a “reverse Opec”, to accelerate climate action and bring down global energy prices.

He also announced that a Labour government would not invest in new oil and gas developments.

He told a panel discussion at the annual meeting: “What we’ve said about oil and gas is there does need to be a transition.

“Obviously, it will play its part during that transition, but not new investment, not new fields up in the North Sea, because we need to go towards net-zero, we need to ensure that renewable energy is where we go next.”

His comments were condemned in the north east of Scotland – the UK’s oil and gas base – with the Aberdeen and Grampian Chamber of Commerce inviting the Labour frontbench to meet companies and workers in the industry.

Ryan Crighton, policy manager at the chamber, said: “I find it very hard to understand how Labour can form an energy policy given how little I know it has engaged with the industry.

“His support for renewables is welcome, but like the SNP last week, the position set out by Sir Keir suggests a fundamental misunderstanding of the energy transition, and the requirement for oil and gas to both bridge and fund it.

“The energy transition is going to take 25 years or more and there is quite clearly a sustained period of time where oil and gas will remain a crucial part of our energy mix.”

Mr Crighton went on to say that the UK has “two options” – continuing with domestic production through the transition or importing oil and gas from abroad.

“The latter makes little economic sense, and even less environmental sense – and opinion polls are consistently showing that the public back this view,” he said.

“I suggest Sir Keir and his shadow cabinet come to Aberdeen to get a balanced view from the people and companies delivering energy security for the UK today, while ploughing billions into the low-carbon energy sources of tomorrow.”

Meanwhile, a group representing oil and gas companies said Sir Keir’s announcement would be “deeply upsetting” for workers in the industry.

Offshore Energies UK external relations director Jenny Stanning said: “Policymakers need to remember that words have consequences.

“Only this week we heard that another major North Sea operator is winding down UK investment.

“This damage must stop and that means we need to find a compromise – a pathway we can all agree on, and which is practical for the country.

“We will be actively seeking those discussions.”

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