Ed Miliband opens his mouth and full fat nonsense comes out – whopper | Personal Finance | Finance
Ed Miliband has just insisted that new drilling in the North Sea will not bring down energy bills, in a desperate attempt to defend his insane ban on new North Sea oil and gas exploration. Anyone who says otherwise is “100% wrong”, apparently. However much we drill, he claims, it won’t lower bills by one penny because prices are set on the international market. So is he right?
Technically, that’s arguable. Oil is globally priced. UK gas prices are influenced by international markets too, especially since we import so much. So no, flicking a switch and drilling tomorrow wouldn’t magically slash your dual-fuel direct debit. The problem is, he’s answering the wrong question. Deliberately.
The argument for North Sea production was never just about cutting the Ofgem price cap. It’s about security, tax revenue, jobs and growth. It’s about whether Britain earns from its own natural resources or writes endless cheques to Qatar and the US. And on that, Miliband’s position is 100% rubbish.
North Sea investment is collapsing. Industry body Offshore Energies UK warns tougher licensing and windfall taxes have slashed spending and put tens of thousands of jobs at risk. Oil and gas extraction has already plunged over the past decade. The sector once supported more than 400,000 jobs. Now it’s fewer than 100,000 and falling fast. That’s 100% not good.
The windfall tax has pushed the tax rate on North Sea profits to 78%. No wonder UK explorers are giving up,and the Treasury is losing out. Again, not good.
They’re not giving up in energy-rich Norway though. Those sensible Scandinavians are merrily drilling away, and reaping the rewards. I’m writing this in clean, smart and civilised Oslo airport, waiting for a flight to scruffy old Stansted. Norway makes Britain feel like a third world country. Oil and gas did that.
Denmark has got the message too. It’s just reversed plans to close its 20-plus offshore fields by the early 2040s. The Danes have got their heads screwed on. Miliband is with the fairies.
In Britain, energy bills are sky-high and industry is collapsing or fleeing overseas, Grangemouth refinery is shutting its refining operations. Steelmakers such as Tata Steel have cut thousands of roles. The Vauxhall van plant in Luton has gone. British Steel’s Scunthorpe blast furnace hangs in the balance. Car production fell 16% last year to its lowest level since the early 1950s. The rollcall is endless.
Miliband says the only route to energy security is clean power. But it costs a fortune. The government has approved £90billion of transmission grid upgrades by 2031 and another £22billion for distribution networks. Ultimately, you will pay for this, through higher taxes. Revenues from North Sea drilling could offset that, and reduce your bills. Miliband doesn’t mention that.
Even if drilling doesn’t directly cut the unit price of gas, domestic production means tax revenues stay here. North Sea oil and gas have generated hundreds of billions over decades. Future fields could do the same. That money can fund public services or offset other taxes. Instead, we pay a fortune to import more energy, offshoring our emissions and employment.
Domestic production would also reduce our reliance on volatile suppliers and support skilled engineering jobs. Miliband promised us 600,000 “green jobs”. Where are they? He says drilling won’t lower bills by a penny. PBut it would bring in some desperately needed jobs and tax receipts.
Britain needs growth, revenue and security. Ed Miliband’s accelerated net zero charge is blowing that apart. And there’s 100% chance he’ll leave us hundreds of billions of pounds poorer as a result. Oh, and he’s also telling porkies about your energy bills. It’s what he does.
