Pressure is mounting on Energy Secretary Ed Miliband after the Scottish National Party appeared to soften its stance on North Sea oil. Scotland’s First Minister John Swinney said while the climate must underpin any decisions, he had to “look at the evidence in the world as it faces me” when it comes to the North Sea. This includes the war in Iran, which has caused oil prices to soar. His comments come the day after Chancellor Rachel Reeves said she was “very happy” to back exploration at Rosebank oilfield and Jackdaw gasfield. Drilling at both sites is on hold pending a legal challenge on climate grounds. Prime Minister Sir Keir Starmer has said the final decision rests with Mr Miliband. Analysts pointed out a “slew of voices” supportive of the green energy transition, including the chief executive of RenewableUK, had now backed North Sea drilling.
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The UK Government controls licences for North Sea exploration. Labour has a policy of not permitting new developments. The Scottish Government has previously opposed licensing new offshore fossil fuel developments. But speaking at a recording of the Holyrood Sources podcast, Mr Swinney said the difference in carbon intensity between imported and domestic oil and gas should form part of the consideration of allowing new fields. He stopped short of saying he supported the approval of fields in the North Sea such as Rosebank and Jackdaw, but said the situation in the Middle East warrants a rethink. He said: “I’ve got to look at the situation that I face in the country today, and the issues in relation to the energy situation in the Middle East causes significant concern and anxiety in relation to these questions. I’ve got to look at the evidence in the world as it faces me today and make sure that I can take the action to support people in Scotland. But obviously underpinning all of that must be the adherence to the rigorous process of climate compatibility assessment, which has got to apply to any particular development.” Andy Mayer, energy analyst at the Institute of Economic Affairs think-tank, said a range of voices had backed North Sea exploration, despite supporting the Net Zero agenda. He said: “The target of the Chancellor’s welcome intervention on North Sea pragmatism is as much the Prime Minister as the Energy Secretary. Keir Starmer unwisely implied to Parliament that it was Ed Miliband who would decide on Britain’s future energy security, not himself, or the Cabinet – forgetting, perhaps, that he is Mr Miliband’s boss, not a lawyer. “Meanwhile, a slew of voices typically supportive of the Government’s Net Zero mission see no conflict with using our own resources rather than imports. The Chancellor can see the benefits of more revenue, offsetting the impact of higher energy prices. If Mr Miliband refuses to consider trade-offs and cannot accept that the national interest trumps his personal ideological preference for ‘leaving it in the ground’, then he should remove himself from the urgent decisions on approving Jackdaw and Rosebank.” Research analyst Ashley Kelty, of investment bank Panmure Liberum, told The Telegraph: “Mr Miliband is very much on his own at the moment. I imagine Labour strategists are saying ‘we’re going to get killed on energy’ on the doorstep in the upcoming campaign.”Previously, Tara Singh, chief executive of RenewableUK, said while efforts should focus on green power, the UK would be “stronger, safer and less exposed if it produces more home-grown energy of every kind”. She said it was “entirely sensible” to support domestic oil, gas and nuclear. Juergen Maier, chair of GB Energy, said that continued North Sea activity could help protect jobs and support supply chains through the energy transition. He later clarified he was “fully supportive” of the Government’s position. LATEST DEVELOPMENTSRachel Reeves ‘very happy’ to see North Sea oil and gas drilling as it would ‘boost jobs and tax revenue’Rachel Reeves on collision course with Ed Miliband as she backs North Sea drillingKemi Badenoch vows to tear down legal barriers that are stopping the flow of North Sea oilOctopus Energy boss Greg Jackson said he is “perfectly relaxed” about drilling. He said: “For as long as we’re using a lot of gas, I personally am perfectly relaxed. I prefer it to come from the North Sea than the other side of the world.” Offshore Energies UK has repeatedly called for a more open approach to the North Sea. CEO David Whitehouse said: “We urgently need greater supplies of secure, domestically produced energy including oil and gas, which will remain a critical part of the UK energy system and economy for decades. “As demand rises and electricity use accelerates, weakening domestic supply would only increase our reliance on imported LNG, leaving consumers more exposed to global volatility and higher emissions. Recent events have shown how quickly energy markets can tighten and how easily cargoes can be diverted away from the UK when other buyers bid higher. Energy security means backing homegrown oil and gas alongside renewables.” A poll by Ipsos suggests 48 per cent of people in the UK support the issuing of new licences for the North Sea. The news comes as it emerged renewables generated a record share of the UK’s electricity in 2025. Provisional figures from the Department of Energy Security and Net Zero found output from renewable technologies such as wind and solar accounted for 52.5 per cent of electricity generation last year. This was an increase of 5.7 per cent compared to 2024. Energy minister Michael Shanks said last year marked “a major step towards greater control over our energy, our bills and our future”, adding: “Britain didn’t just break records in 2025 – we blew them away.”A government spokesperson 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 billpayers – 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.”Our Standards:
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