Swinney opposes UK plan to ban new North Sea oil and gas licences

A licensing ban written into law

The Energy Independence Bill, introduced by Energy Secretary Miatta Fahnbulleh, would remove the North Sea Transition Authority's power to grant new oil and gas licences if MPs pass it. The government presents the measure as delivery of Labour's 2024 manifesto pledge to issue no new licences for exploring fresh North Sea fields. It would also make Ed Miliband's moratorium on new drilling permanent, meaning a future government could overturn it only with a parliamentary majority. Prime Minister Andy Burnham is set to back the bill. The Jackdaw gas field, approved in October, falls outside its scope, and Rosebank, the UK's largest known untapped field off Shetland, is not affected by the licensing change either.

Scotland's First Minister breaks with London

Scotland's First Minister John Swinney told MSPs at First Minister's Questions that he does not support the bill's provisions on new licences. He said oil and gas would be needed "for some years to come" and argued there is a "rational" basis for considering developments in Scotland if their carbon emissions are lower than those of imported fuel. Answering Malcolm Offord, leader of Reform UK in Scotland, Swinney said the bill brings together measures the Scottish government supports.

“we do not support the provisions of that bill in relation to the position on the granting of new licences”

Swinney argued that each application would have to be weighed against its effect on Scotland's carbon reduction target. The Scottish government's 2023 energy strategy set a presumption against new oil and gas drilling, a stance proposed under Nicola Sturgeon's leadership. The Swinney administration appears to have moved away from that position, particularly since war broke out in the Middle East. Swinney has repeatedly declined to say whether he explicitly supports drilling at Rosebank.

Rosebank and public opinion

Polling for Offshore Energies UK (OEUK) by Opinium asked 2,050 adults across the UK about North Sea projects. Of those who voted Labour in 2024, 65% want Rosebank approved and only 17% want it rejected, while 68% endorse the approval of the Jackdaw gas field off Aberdeen. Among the same group, 72% say oil and gas are essential for the foreseeable future.

Rosebank should be approved65%

Rosebank should be rejected17%

Backed Jackdaw approval68%

Say oil and gas essential72%

Rosebank should be approved

65 %

Rosebank should be rejected

17 %

Backed Jackdaw approval

68 %

Say oil and gas essential

72 %

Data from the article text

Across all respondents, 55% favour raising domestic oil and gas production and 63% say Rosebank should go ahead. OEUK chief executive David Whitehouse said the figures give government an opening to work through North Sea projects awaiting approval, and he tied the final Rosebank decision to the coming months. The poll comes against Labour's 2024 manifesto under Keir Starmer, which pledged no new licences.

Favour more domestic production55%

Say Rosebank should go ahead63%

Favour more domestic production

55 %

Say Rosebank should go ahead

63 %

Data from the article text

Reports differ on Rosebank's legal status. One says its earlier licence was ruled unlawful, forcing the project to be considered again, while another says the field already holds a licence.

Government and opposition arguments

Fahnbulleh framed the bill around household finances and energy security.

“Through this bill, we will build a clean energy future which people feel in their pockets”

Prime Minister Andy Burnham made a similar case, promising lower bills and greater control over energy supply.

“Together, these changes will bring bills down for good”

The government says transitional energy certificates would allow further production from existing fields, including through current infrastructure, and claims this could unlock around 60 million barrels and support hundreds of jobs. Amendments to the bill would also scrap standing charges on household gas bills, as promised in John Healey's budget. Andrew Bowie, the shadow energy secretary, argued the bill would leave Britain more dependent on imported oil and gas and would effectively close the North Sea for business.