One of the Labour Party’s most prominent financial backers has called on Ed Miliband to slam the brakes on North Sea oil and gas exports, warning that the escalating conflict with Iran could leave Britain dangerously short of fuel.
Dale Vince, the green energy entrepreneur behind Ecotricity, said the Energy Secretary must be prepared to act decisively, instructing operators in the basin to keep hydrocarbons at home should supplies tighten further. Speaking to the Daily Telegraph, he argued it would be “bonkers” to continue shipping British barrels overseas while households and businesses brace for a squeeze.
“We can ban exports from the North Sea. China have done it,” Mr Vince said, pointing to Beijing’s willingness to prioritise domestic consumption during periods of strain. “If we are facing the prospect of a fuel shortage, then stop exporting it.”
Britain currently pumps around 53 million tonnes of crude annually, the bulk of which heads to refineries in the Netherlands, Poland and beyond. In a quirk of the global trading system, the country then imports roughly 51 million tonnes to feed its own forecourts and power stations, leaving it fully exposed to price spikes on world markets.
That exposure has become painfully evident since hostilities in the Gulf erupted last month. Roughly one-fifth of global oil and liquefied natural gas supplies remain bottled up behind Tehran’s closure of the Strait of Hormuz, sending Brent crude soaring to about $109 a barrel from $77 at the start of the month. Wholesale gas has jumped by around three-quarters, pushing up pump prices and prompting warnings from suppliers that household energy bills will climb sharply in the months ahead.
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