Connect with us


Labour’s Energy Strategy Casts Shadow on North Sea Oil Ventures Ahead of Election



Labour's planned prohibition on issuing new North Sea oil and gas licenses is causing concern among producers.

Business host @iankingsky

Thursday, June 6, 2024, 1:

If survey predictions hold true, the Labour Party is poised to take power in just under a month, but its proposed policies are already influencing the business sector.

On Wednesday, it was announced by three energy firms—Jersey Oil and Gas, Serica Energy, and Neo Energy—that the commencement of oil production at the Buchan oilfield, located 120 miles northeast of Aberdeen in the North Sea and jointly owned by them, has been postponed by a year.

The group directly connected their decision to the unexpectedly early scheduling of the election.

Discover more about Labour's introduction of its Great British Energy initiative – is it necessary?

Jersey Oil and Gas, on behalf of itself and its collaborators, informed its investors: "Efforts are ongoing to prepare the Buchan project for field development plan approval by year's end. However, the precise schedule for reaching this crucial goal and advancing the project is dependent on obtaining fiscal certainty from the upcoming government and confirming that the project is economically viable."

The primary energy initiative of the Labour

This alluded to the energy policies advocated by the Labour Party.

Further Updates on Oil Industry

Oil prices increase following Ukraine's assault on key Russian oil facility

Shell announces a drop in earnings to £22 billion following a record-setting year in 202

The recent decision on oil and gas is a political win for the Prime Minister, though it does little to address our actual energy requirements.

In a recent announcement, Sir Keir Starmer, head of the Labour Party, unveiled plans for a 'green prosperity plan' which involves an investment of £23.7 billion throughout the next parliamentary term. Central to this initiative is the establishment of Great British Energy, a government-run entity focused on renewable energy investments.

The majority of the funding will come from increasing the windfall taxes that were initially levied on North Sea oil and gas producers by Rishi Sunak during his tenure as chancellor in 2022.

Last week, Sir Keir advocated for a comprehensive windfall tax, suggesting an increase in the overall tax rate from the existing 75% to 78%.

Ed Miliband, holding the position of shadow secretary of state for energy security and net zero, and the designer of Labour’s energy policies, also suggests eliminating the tax breaks that Mr. Sunak established, in addition to the windfall tax, which permitted producers to deduct their new production investments from their tax liabilities.

Offshore Energies UK, a sector organization, has indicated that the proposals put forward by the Labour Party might lead to a reduction of 42,000 positions in the North Sea oil and gas production workforce.

Oil and Gas Firms Alarmed by Lack of New Licenses

It seems that what truly alarmed Jersey and its associates was the Labour Party's earlier commitment to not issue any additional North Sea oil and gas permits.

If the ban is implemented, it will significantly affect projects such as Buchan, which is estimated to hold 100 million barrels of oil and was expected to start production in 2026.

Labour's plans might also jeopardize other North Sea investments, including the £900 million Buchan project.

According to today's update from Energy Voice Online, additional ventures such as Glendronach, a planned gas field west of Shetland by French giant TotalEnergies, and Avalon, an oilfield in the Outer Moray Firth being developed by Malaysian firm Ping Petroleum, might face delays similar to those experienced by Buchan.

The article also mentions that the plans by Viaro Energy, located in London, to acquire North Sea properties such as the Anning and Somerville gas fields from Australian company Hartshead Resources are experiencing postponements.

Viaro's founder and CEO, Francesco Mazzagatti, expressed to Energy Voice Online, "The recent general election and the Labour Party's commitments to stop issuing new oil and gas licenses have complicated strategic planning for North Sea investments among producers."

The Conservatives have revised the Energy Profits Levy (EPL) tax four times over a few years. Additionally, with the new proposals Labour has introduced concerning the sector, there's a notable absence of the necessary stability and foresight needed for the efficient and timely execution of projects.

"It's high time for a more practical method."

Advocacy and mobilization by political groups and

In the lead-up to the upcoming vote, both the Conservative Party and the Scottish National Party, who presently share control of all the constituencies in the Grampian area, are vigorously focusing their efforts on this matter as part of their campaign strategies.

Yet, upon taking office, this problem may rapidly evolve into a significant challenge for the new Labour administration.

Unite, the largest trade union in the UK and a key financial supporter of the party, is pressing Sir Keir to avoid prohibiting new oil and gas exploration licenses until Labour devises strategies to compensate for the potential employment impacts of such an action.

Stay ahead with the latest Breaking News

Download the Sky News application at no cost

The sector is eager for a swift resolution to gain clear direction.

Associated Subjects

Footer for Sky News

Information on Sky News

Services Provided by Sky News

Channels Under Sky

Additional Sky Websites

Discover more from Automobilnews News - The first AI News Portal world wide

Subscribe to get the latest posts to your email.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Automakers & Suppliers45 mins ago

Driving Excellence: Unveiling Ferrari’s Cutting-Edge Innovations and Timeless Elegance

Automakers & Suppliers1 hour ago

Top Innovations: Unveiling BMW’s Latest Cutting-Edge Technologies and Sustainability Initiatives

Automakers & Suppliers1 hour ago

Top Innovations by Audi: Exploring the Latest Audi AI Breakthroughs and News

Moto GP2 hours ago

Aprilia Optimistic Despite Challenges as Bezzecchi Joins Martin in 2025 MotoGP Line-Up

Moto GP2 hours ago

Pedro Acosta Eyes Historic Win at Dutch MotoGP as Record-Breaking Opportunity Nears

Moto GP3 hours ago

Pressure Mounts on Augusto Fernandez: KTM’s Ultimatum for 2024 MotoGP Season

Moto GP3 hours ago

Clash of Titans: Can Marc Marquez and Francesco Bagnaia Harmonize as Ducati Teammates in 2025?

Moto GP4 hours ago

**”Trackhouse Racing Faces Uncertainty as Rider Market Heats Up Amid Silly Season Frenzy”**

F14 hours ago

F1 2025: Damon Hill and Danica Patrick Weigh In on the Hamilton-Leclerc Rivalry at Ferrari

F15 hours ago

Helmut Marko Issues Warning: Red Bull Can’t Rely Solely on Max Verstappen’s Brilliance Amid McLaren Challenge

Automakers & Suppliers5 hours ago

### “Driving Excellence: Unveiling Lamborghini’s Latest Innovations in High-Performance Luxury Cars

F15 hours ago

Valtteri Bottas Hints at Imminent Resolution in F1 Driver Market Drama: Key Date Approaches

F16 hours ago

Northamptonshire Police Clear Mercedes of Wrongdoing in Lewis Hamilton ‘Sabotage’ Email Investigation

Sports9 hours ago

Revving Up Excellence: ABT Sportsline’s Mastery in Audi and VW Tuning

Moto GP10 hours ago

Pol Espargaro Hails Pedro Acosta’s ‘Insane’ MotoGP Progress: Compares Throttle-Brake Technique to Valentino Rossi

Moto GP10 hours ago

Five Contenders to Replace Marco Bezzecchi at VR46 Ducati After Aprilia Move

Moto GP11 hours ago

Aprilia Racing CEO Massimo Rivola Expresses Mixed Emotions as Vinales Departs, Bezzecchi Joins for 2025 MotoGP Line-Up

Moto GP11 hours ago

Marco Bezzecchi’s Dream Realized: Joins Aprilia as Factory Rider for 2025 MotoGP Season

Moto GP4 weeks ago

Enea Bastianini’s Bold Stand Against MotoGP Penalties Sparks Debate: A Dive into the Controversial Catalan GP Decision

Moto GP4 weeks ago

Aleix Espargaro’s Valiant Battle in Catalunya: A Lion’s Heart Against Marc Marquez’s Precision

Moto GP4 weeks ago

Raul Fernandez Grapples with Rear Tyre Woes Despite Strong Performance at Catalunya MotoGP

Sports4 weeks ago

Leclerc Conquers Monaco: Home Victory Breaks Personal Curse and Delivers Emotional Triumph

Sports4 weeks ago

Verstappen Identifies Sole Positive Amidst Red Bull’s Monaco Struggles: A Weekend to Reflect and Improve

Moto GP4 weeks ago

Joan Mir’s Tough Ride in Catalunya: Honda’s New Engine Configuration Fails to Impress

Sports4 weeks ago

Leclerc’s Monaco Triumph Cuts Verstappen’s Lead: F1 Championship Standings Shakeup After 2024 Monaco GP

Sports4 weeks ago

Leclerc Triumphs at Home: 2024 Monaco Grand Prix Round 8 Victory and Highlights

Sports4 weeks ago

Perez Shaken and Surprised: Calls for Penalty After Dramatic Monaco Crash with Magnussen

Sports4 weeks ago

Gasly Condemns Ocon’s Aggressive Move in Monaco Clash: Team Harmony and Future Strategies at Stake

Business1 month ago

Driving Success: Mastering the Fast Lane of Vehicle Manufacturing, Automotive Sales, and Aftermarket Services

Business1 month ago

Shifting Gears for Success: Exploring the Future of the Automobile Industry through Vehicle Manufacturing, Sales, and Advanced Technologies

Business2 months ago

Driving Innovation and Success: Navigating the Future of the Automobile Industry with Top Trends, Automotive Sales, and Aftermarket Strategies

Business1 month ago

Driving Success in the Fast Lane: Mastering Market Trends, Technological Innovations, and Strategic Excellence in the Automobile Industry

Business2 months ago

Driving Forward: Mastering the Future of the Automobile Industry through Innovation, Market Trends, and Strategic Excellence

Tech1 month ago

Driving the Future: Exploring Top Innovations in Automotive Technology for Enhanced Safety, Efficiency, and Connectivity

Business1 month ago

Driving Success: Mastering the Automobile Industry with Key Insights on Vehicle Manufacturing, Automotive Sales, and Beyond

Business1 month ago

Hong Kong’s Ambitious Leap: The City’s Strategic Roadmap to Becoming a Global Innovation and Tech Hub


Get ready for a groundbreaking shift in the world of artificial intelligence as the V12 AI Revolution is on the horizon


Business NEWS



Chatten Sie mit uns

Hallo! Wie kann ich Ihnen helfen?

Discover more from Automobilnews News - The first AI News Portal world wide

Subscribe now to keep reading and get access to the full archive.

Continue reading