Rachel Reeves has declared she is “very happy” to support continued North Sea oil and gas extraction, signalling strong backing for the sector’s future in British waters.Speaking to Jeremy Vine on BBC Radio 2, the Chancellor expressed clear enthusiasm for ongoing drilling operations.Ms Reeves said: “I’m very happy that we are” when asked about her position on North Sea drilling.She pointed to the economic benefits of maintaining domestic fossil fuel production, indicating that key decisions on new developments are still to be made.
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“There are a couple of decisions that need to be made” she said regarding new oil fields, adding that continued extraction would “create jobs and tax revenue” for the nation.Her remarks represent a firm endorsement of the industry at a time of continued volatility in global energy markets.Licensing decisions for two major North Sea developments now fall to Energy Secretary Ed Miliband, whose portfolio includes the Rosebank oil field and Jackdaw gas field.Mr Miliband has previously expressed opposition to new exploration projects as part of efforts to accelerate Britain’s transition to renewable energy.The Chancellor’s backing of continued fossil fuel extraction places her position in contrast with her Cabinet colleague’s stance on new developments.The difference in approach comes as the Government weighs energy security, economic growth and climate commitments.Ms Reeves also confirmed that restrictions on drilling adjacent fields in the North Sea have already been lifted, allowing further expansion in existing areas.While acknowledging that domestic production would not influence prices at petrol pumps, the Chancellor maintained that the economic case for continued extraction remained strong.LATEST DEVELOPMENTSRachel Reeves unveils new car tax changes today as millions face higher ratesHigh street betting giant to close 200 shops with hundreds of jobs at risk as Labour taxes blamedDrivers could be forced to scrap cars as Rachel Reeves’ tax hike makes vehicles ‘worthless’Ms Reeves said: “Even if we drilled every bit of oil and gas out of the North Sea, we wouldn’t be able to set the price of it and it’s the price that’s going up at the moment it wouldn’t affect the price of the pumps.”But it would, of course, create jobs and tax revenue, and that is why, exactly, we continue to support oil and gas for decades to come.”Labour’s decision to remove barriers to drilling adjacent fields reflects a policy approach focused on maximising output from existing North Sea infrastructure.The Chancellor’s comments come amid rising fuel costs linked to instability in the Middle East, where disruption to shipping routes has affected global supply.Ms Reeves said: “We had Russia invading Ukraine, and that disrupted and we put sanctions on Russia, rightly so.”We have now got the disruption in the Middle East, and it’s hard to get the oil and gas out of the Strait of Hormuz, which is pushing up prices.”The Chancellor argued that global instability highlights the need for greater domestic control over energy supply.Ms Reeves said: “It does show that we have got to take control of our own energy supplies here in Britain.”
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