Dozens of North Sea oil and gas fields blocked by net zero

 Dozens of North Sea oil and gas fields are being blocked from development by Labour’s net zero policies, a new analysis shows.

There are 51 known new fields in British waters that could be feeding domestic pipes but have been rendered “unviable” by current government policies, including the windfall tax and a ban on exploration licences.

On top of these, some 60 extensions to existing fields are being held back for the same reasons, according to trade body Offshore Energy UK (OEUK).

The data emerged from a survey of offshore operators to see how they have responded to the taxes and regulations imposed by successive governments.

OEUK said the fields would be viable under “reform to the current regulatory and fiscal regime”, particularly by overhauling the windfall tax – known officially as the energy profits levy.

David Whitehouse, the trade body’s chief executive, said: “Our proposal will unlock immediate investment, secure tens of thousands of jobs and deliver more tax, not less, for essential services like schools and hospitals.​

“The future of the North Sea is in our hands. ​Our message to the Government is simple. Reform the energy profits levy in 2026 to unlock more tax, not less, support more jobs, not less and deliver more homegrown energy, not less.”

Ed Miliband, the Energy Secretary, is under increasing pressure to relax the Government’s stance on North Sea drilling as the Middle East crisis heightens scrutiny of energy imports.

Along with the Conservatives, John Swinney, the SNP leader and Scottish First Minister, industry leaders including Greg Jackson, the Octopus Energy boss, Chris O’Shea, the British Gas chief and Tara Singh, the RenewablesUK boss, are among those who have backed more drilling.

Supporters say that maximising the North Sea’s output would generate tax revenues, preserve jobs and result in lower carbon emissions than oil and gas from abroad.

However, Mr Miliband has pushed back against the calls, arguing that it cannot “take a penny off bills”.

Claire Coutinho, the shadow energy secretary, said: “Ed Miliband’s ideological vendetta against the North Sea is making our fields unviable, which will only force Britain to import more gas from Norway – from the very same fields we could be drilling ourselves.

“Let’s get Britain drilling, and use the tax to cut bills.”

The 111 projects identified by OEUK have the potential to produce an extra 3.5 billion barrels of oil and gas, the trade body said, along with £50bn in private investment.

Of that total, around 1.3 billion barrels, or 230 billion cubic metres, of gas could be produced – enough to meet Britain’s entire needs for three and a half years.

In reality, about 39pc of the UK’s gas today is produced by the North Sea, with around 45pc coming by pipeline from Norway and nearly all of the rest being imported as liquefied natural gas (LNG) from abroad.

OEUK has said that Britain could reduce its dependence on foreign LNG to just 6pc of supplies by 2035, compared to around 14pc today, if domestic resources were exploited more.

A government spokesman said: “Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills.

“Regardless of where it comes from, oil and gas is sold on international markets, which set the price for British bill payers – making us a price taker.

“The only way to truly protect ourselves from these price spikes is to get off the rollercoaster of fossil fuel markets.”