The UK is at risk of an energy shortage due to Labour‘s proposed ban on North Sea exploration, warns major oil and gas producer Ithaca Energy in an interview with the BBC.
Ithaca Energy says that Labour’s plan to ban new oil and gas exploration in the North Sea, along with current taxation policies, has “spooked” investors.
Last week, Labour leader Sir Keir Starmer stated that denying licences for new North Sea fields is essential to avoid a future “historic mistake” of relying solely on dwindling domestic resources.
Gilad Myerson, Ithaca’s Executive Chairman, highlighted the potential consequences of such a ban, claiming that it would lead to the UK being starved of energy and heavily dependent on foreign sources.
Myerson said: “By a new government imagining they’ll be able to stop licences and oil development in the UK, ultimately what that means is that they’ll be starving the UK of energy, and it will become very dependent on energy from abroad.”
Responding to the concerns, a Labour spokesperson assured that while no new licences would be granted, existing North Sea fields would continue to be utilised for several decades.
The spokesperson said: “The best way to bring down bills, increase our security and sovereignty, and create good jobs is to get on with a sprint for clean energy and we welcome all businesses being part of that.”
