Labour is still in a muddle on North Sea oil and gas | Nils Pratley

"The clear part is that Ed Miliband's energy security and net zero department will create transitional energy certificates for limited oil and gas drilling in areas that are part of an existing field or adjacent to a licensed field. The idea is to keep those sites economically viable for longer by using existing rigs and pipelines. The approach sounds sensibly practical."

"The UK's current reliance on imported oil and gas is doing little to reduce emissions (shipments of liquefied gas from the US and Qatar are far more polluting than domestic production) or protect jobs in a supply chain that will be needed to build renewables infrastructure. The risk in not allowing so-called tiebacks is that decline in the North Sea accelerates even faster at a time when oil and gas still provides three-quarters of the UK's energy needs and imports are running at 40%."

Labour's policy prohibits new licences to explore new North Sea fields while permitting management of existing fields throughout their lifespan to avoid jeopardising jobs. Transitional energy certificates will allow limited drilling in areas within or adjacent to licensed fields, using existing rigs and pipelines to extend site viability. Domestic production emits less than imported liquefied gas, and maintaining tiebacks could slow rapid decline in the North Sea as oil and gas still supply around three-quarters of UK energy while imports reach about 40%. The Treasury will retain the energy profits levy until 2030, which industry cites as reducing investment.

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