Key figures within the Labour Party are expressing strong opposition to the potential approval of a major new oilfield near Shetland by Keir Starmer later this year.
The Rosebank oilfield, the largest undeveloped reserve in the UK, has become a point of contention within the party, highlighting the divide between environmental advocates and those prioritising economic expansion, led by Rachel Reeves.
This internal conflict follows Reeves’s endorsement of a third runway at Heathrow to boost economic growth.
Tensions are set to escalate with Ed Miliband, the Energy Secretary, poised to confront any approval of the Rosebank project vigorously, citing significant concerns over the project’s carbon emissions impact.
Labour backbenchers are also voicing readiness to challenge the decision vehemently, signalling a broad-based resistance within the party.
The project, led by Norwegian firm Equinor, faced a setback this week when a Scottish court deemed the previous government’s approval as unlawful, citing insufficient assessment of the project’s long-term carbon output. Despite this, Equinor plans to submit a revised application for consent.
While the North Sea Transition Authority technically holds decision-making power, the sensitivity of the matter suggests Prime Minister Starmer himself may need to intervene.
The Labour government, which had pledged against new North Sea oil and gas licences, faces a complex decision with Rosebank, which already possesses a licence but requires environmental approval to commence operations.
The push for economic growth, emphasized by Reeves and apparent in recent government actions, may increase the likelihood of the project’s approval, despite potential conflicts with environmental goals.
This approach has sparked concerns within the party about the government’s commitment to a coherent strategy balancing growth with environmental sustainability.
