The UK’s offshore energy industry has warned the Labour Party against “simplistic” proposals to end new licences for oil and gas – and repeated its plea for the party to engage further with industry.

Offshore Energies UK (OEUK) on Sunday issued its warning after reports in The Sunday Times that [opposition Labour leader] “Keir Starmer will announce plans to block all new North Sea oil and gas developments”.

“People wouldn’t forgive anyone who shut down Britain’s oil and gas industry only to replace it with imports of foreign oil and gas. Everyone is clear that the energy system must change but business and government must do this in partnership. Labour’s approach risks sending the wrong signals,” said OEUK chief executive, David Whitehouse.

“Labour’s proposals are also very unclear, especially on costs. Our sector now needs clarity on the detail of Labour’s plans including analysis on what they mean for jobs, energy security, imports and Britain’s overall economy.”

The article was accompanied by a leader column warning Labour of the dangers of such a move, including soaring reliance on imports, increased import bills and reduced energy security. The Sunday Times leader pointed out that the UK gets 75% of its total energy from oil and gas — so having its own supplies was a vital bulwark against future global shortages.

OEUK said Labour should take a more collaborative approach to the UK’s offshore industry. It highlighted the approach of the US, Norway and many Middle East nations, which are working with their own energy sectors to support domestic supplies — while also capitalising on the industry’s expertise to expand low-carbon technologies such as wind, and mass hydrogen production.

The industry body pointed out that some 24 million UK homes rely on gas boilers for heat and hot water, and the nation has 32 million vehicles running on petrol or diesel. Also, about 42% of the UK’s electricity comes from gas-fired power stations.

“Homegrown production of oil and gas means we avoid costlier, less secure and higher carbon footprint imports. Investment in UK production would also support the infrastructure and workforces needed to make cleaner, more affordable energy in the UK, for the UK,” added Whitehouse.

“As we build that future there is no simple choice between oil and gas on the one hand and renewables on the other. The reality is that to keep the lights on and grow our economy, we will need both. By the mid-2030s, oil and gas will still provide for 50% of our energy needs.”

The UK offshore sector is vital for the nation’s economic wellbeing, supporting more than 200,000 skilled jobs across the country and adding over £20 billion ($24.7 billion) to the economy this year alone. It paid an estimated £11 billion in taxes in the 2022/2023 fiscal year, claimed the OEUK.

“We urge Sir Keir Starmer and Rachel Reeves to fulfil their promise to listen to industry and engage with our workers. We need to meet our climate goals but without undermining UK energy security, the economy and our skilled workforces – the very people needed to deliver lower carbon, secure and affordable energy,” said Whitehouse.