Tony Blair tells Labour to drain every drop of oil from North Sea and axe net zero targets
Tony Blair has called for and end to the Labour’s government’s net zero pursuit and a rethink of a ban on North Sea drilling.
Former prime minister Tony Blair has called on the Labour government to drain every drop of oil and gas from the North Sea and scrap its net zero targets.
The intervention from Sir Tony, who was Labour leader from 1997 to 2007, has been seized on by critics groups wanting Energy Secretary Ed Miliband and Prime Minister Sir Keir Starmer to reverse a flagship manifesto pledge to end drilling in the North Sea.
Sir Tony’s opposition to net zero targets and call to drain every drop of fossil fuel puts him in line with the Conservatives and Reform.
In a long essay that is highly critical of policy choices taken by the Labour government, Sir Tony said: “We must prioritise cheaper energy and electrification over net zero and use what is left of our North Sea oil and gas resources.”
He added: “This is essential for our competitiveness and for taking advantage of AI.”
“At a minimum, the government should try to limit the effect of the changes made and, as we have argued consistently, remove those parts of the net-zero agenda which prioritise clean energy over cheaper energy; and from now on make sure the actions match the words on growth,” Sir Tony said.
The former prime minister warned that “some of the things we’re spending money on, I think we’ve got to change”, adding that “the very large sum of money we’re spending on net zero”.
“I just don’t think it is the right priority for the country now”, he said.
Asked if the UK government’s green energy targets should be scrapped, Sir Tony said: “Yes, I am.”
He told Times Radio: “It’s not that I’m against renewable energy, clean energy and it’s not that I’m a climate denier. But it’s coming to terms with this reality.
“Britain’s emissions are around 1 per cent of global emissions. We can’t solve climate change.
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“To impose costs on our own businesses and consumers in order to accelerate to net zero when the rest of the world is not doing so, I don’t understand the logic behind it.
“Or shutting down our own North Sea oil and gas industry in circumstances where again, I don’t know of another country in the world who is doing that if its still got a requirement to import energy for oil and gas.”
Sir Tony hit out at “leaving stuff in the ground we could take out and use” and “losing the revenue from that”.
Climate scientists, the United Nations and the International Energy Agency have all warned that climate targets cannot be met with new drilling for fossil fuels, but the oil and gas industry has warned about the scale of jobs being lost in the sector.
Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said: “Our region has seen the acute damage caused by hollowing out our proud North Sea oil and gas sector before the renewables and low carbon industries that will supply our future demand have been properly scaled up.
“For as long as we still need oil and gas, we should produce our own – not import these resources from halfway across the world at higher cost, and with greater associated carbon emissions.
“Tony Blair is right – we’re putting ourselves at a huge competitive disadvantage by not using what’s left of our own oil and gas resources.”
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He added: “We can get the North Sea moving again by unblocking the regulatory process, moving from the damaging Energy Profits Levy to the Oil and Gas Price Mechanism and taking a more pragmatic – and less ideological approach – on new exploration licences, based on our energy needs.
“Unlocking that potential would mean £17.5 billion in direct investment by industry before 2030, sustaining jobs, supporting the supply chain and generating significant public revenues and economic growth.”
Enrique Cornejo, Offshore Energies UK’s (OEUK’s) energy policy director said: "OEUK agrees energy policy must deliver affordable, reliable power to support growth, but this is not a choice between the North Sea and renewables – the UK needs both.
"The North Sea is a strategic national asset which is critical to our energy security and resilience. Every barrel of oil and every cubic metre of gas we produce in the UK makes us more secure and displaces higher carbon imports.
"The UK now imports around 50 per cent of the gas used to heat our homes and power our industry. It makes sense for our energy security, emissions and economy to produce more of it here rather than rely on more imports. However, under current policies domestic production is set to decline by 46 per cent by 2030. This outcome is not inevitable.
“OEUK modelling shows that under a scenario where domestic supply is prioritised domestic gas production can be maintained at 2025 levels.The offshore energy sector supports more than 240,000 jobs and contributes billions of pounds to the UK economy annually, with the wider offshore energy sector expected to invest up to £120 billion over the next 10 years across oil and gas, wind, carbon capture and hydrogen.
"A stable, pragmatic policy framework is essential to unlock more of that investment and ensure a managed, orderly transition."
SNP MSP David Linden argued that “even senior members of the Labour Party can now see” that “Westminster has been disastrous for Scotland”.
He added: “Westminster has implemented a brutal tax on jobs, ruined 1,000 energy jobs a month through their hated tax on Scotland's energy and inflicted sky-high energy bills on hard working households.
“Broken, Brexit Britain is in terminal decline and is bound for a Farage future – Westminster does not work for Scotland and we desperately need a fresh start with independence.”
Scottish Conservative energy spokesperson Liam Kerr said: “Even Tony Blair can see the policy of his own Labour party is destructive, illogical and dangerous.
“Labour and the SNP’s reckless opposition to new oil and gas licences is putting thousands of vital jobs at risk, costing us billions in lost revenue and making Britain more reliant on foreign energy imports.”
He added: “This grave act of national self-harm is driving up bills for hard-pressed families, but out-of-touch Labour and SNP ministers just don’t get it.”
Reform UK energy spokesperson for Scotland, Duncan Massey, said: “Tony Blair is right to highlight the importance of using what remains of our North Sea oil and gas resources but it is extraordinary that it takes a former Labour Prime Minister to say what the current Labour leadership refuses to admit.”
“Labour has done little to support the oil and gas sector, despite the tens of thousands of jobs and billions in economic value it provides to communities across Scotland and the wider UK. Instead, the industry has faced punitive taxation, political uncertainty and a damaging ideological hostility towards domestic energy production.”
“Britain should use its own natural resources rather than importing expensive oil and gas from overseas with higher carbon emissions attached. Common sense energy policy means backing North Sea jobs, supporting investment and ensuring energy security for the country.”
A UK government spokesperson said: “As Britain faces the second fossil fuel crisis of this decade, we must learn the right lessons.
“Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills.
“The way to get bills down for good and avoid these price spikes is to go further and faster with this government’s drive for clean homegrown power we control.”
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