Former BP chief John Browne urges the UK government to halt new North Sea drilling licences, advocating for a green energy transition and implicitly endorsing Labour’s renewable-focused policies before the general election. Here’s the full story.
Stop Issuing Oil and Gas Licences
John Browne, the former chief executive of BP, has written in the Financial Times urging whoever will be the next Prime Minister of the UK to stop issuing new North Sea oil and gas drilling licences.
Endorsement of Labour’s Energy Policy
His call has been widely regarded as a crucial endorsement of the Labour Party’s energy policy, emphasising the importance of a green transition to potentially halt the impending climate catastrophe ahead of the upcoming election.
“Existential Threats of Famine and Mass Migration”
In his article for the Financial Times, Browne wrote, “A key test for the parties competing in this UK election is whether they have serious plans for the country’s green energy transition. What will they do to combat climate change and its existential threats of famine and mass migration?”
Economic Infeasibility of Continued Drilling
Browne argued that continuing to develop the remaining limited oil and gas resources would not be economically viable compared to purchasing supplies from the global market.
Challenge to Conservative Policy
Browne’s stance challenges the Conservative party’s policy of maximising the North Sea’s output through annual licensing rounds, aiming to bolster energy security and reduce gas prices.
Licences Already Granted Should Continue
However, Browne did not call for an immediate end to all North Sea drilling, arguing that licences that have already been granted for drilling must be allowed to continue.
“We Should Call a Halt”
He added, “Beyond this, we should call a halt. Such a move will reinforce our intention to get to net zero and show timely leadership.”
Limited Resources Not Cost-Effective
He added, “It is also hard to believe that finding and developing the very limited oil and gas resources that remain will be economic – or cost less – than buying supplies from the world market if needed.”
Alignment With Energy Experts
This perspective aligns with the views of various energy experts who have discredited claims that further exploration would enhance the UK’s energy security or significantly reduce gas bills.
Labour’s Renewable Energy Focus
The Labour party, led by Sir Keir Starmer, has promised to end new oil and gas exploration in the North Sea and focus instead on developing renewable energy sources.
“Chorus of Energy Experts”
Shadow climate secretary Ed Miliband echoed Browne’s sentiments, stating, “Lord Browne’s intervention adds his voice to the chorus of energy experts, including the International Energy Agency and the Climate Change Committee, who make clear that new oil and gas licences are not the right choice for Britain.”
Sprinting to Develop Clean Energy
He added, “The only way to boost our energy security, strengthen our economy, protect our climate and ensure long-term, good jobs here in Britain is by managing existing licences while sprinting to develop the clean energy industries of the future.”
Windfall Tax and GB Energy
Labour’s strategy includes toughening the windfall tax on North Sea oil and gas profits to fund GB Energy, a publicly owned green energy company.
£8.3bn for Green Technologies
This company aims to scale up new green technologies and community energy projects with an initial capitalisation of £8.3bn.
Concerns From Trade Unions and Industry
While Browne’s stance supports Labour’s policy, it has sparked concerns among trade unions and the oil and gas industry.
“Coal Miners of Our Generation”
Sharon Graham, general secretary of Unite, cautioned against banning new licences without a clear plan to safeguard jobs, warning that those who work in oil and gas were at serious risk of becoming the “the coal miners of our generation.”
Investment Deals Paused
Alongside the union’s warnings, the oil and gas industry’s apprehension is evident, with some investment deals and projects being paused due to political uncertainty.
Investment in Renewable Energy
A crucial element of Browne’s vision is the accelerated investment in renewable energy sources such as wind and solar power.
Developing Infrastructure for Renewables
He underscored the importance of developing infrastructure, including long-term storage solutions, to bring these renewable supplies to market.
Commitment to Renewable Transition
Browne’s pivot from working in fossil fuels at BP to climate investing at venture capitalist group General Atlantic exemplifies his commitment to supporting this transition to renewable energy. It has added significance to his endorsement of Labour’s energy plan.
Environmental Policy in Upcoming Election
Browne’s intervention is particularly significant in the lead-up to the general election, when environmental policy has yet to be brought up as a significant issue, but which, according to Statista, over 80% of the UK public have serious concerns about.
Litmus Test for Political Parties
Browne’s call to halt new drilling licences serves as a litmus test for political parties, challenging them to present concrete and ambitious plans for the UK’s green energy transition.
Potential Impact on Voters
It remains to be seen if his implicit endorsement of Labour’s policy and his critique of the Conservative approach will change voters’ minds as the general election draws closer.
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