Don't give up on oil, Norway warns Britain
Norway will never turn its back on the North Sea as Britain has done, its energy minister has said in a rebuke to Labour's net zero pledges.
Terje Aasland told The Telegraph that Norway had 'a totally different view' to the UK on the oil and gas industry which he said creates jobs and wealth.
Mr Aasland said: 'We want to develop [the North Sea] for the long-term, because the oil and gas industry and the service industry is really important. It saves jobs and creates a lot of value for Norwegian society.
'I think in the UK, the oil and gas industry has contributed in just the same way – until now.'
Ed Miliband, the Energy Secretary, has banned all new drilling for oil and gas in the North Sea as part of his bid to help Britain hit net zero by 2050.
However, Mr Aasland, who is an electrician by trade, said the process of switching entirely to renewable energy sources would be a slow process and Norway expected to be sending fossil fuels to Britain 'for many decades'.
Norway has amassed the biggest sovereign wealth fund in the world largely thanks to its vast investments in oil and gas. The fund is currently worth around £1.3 trillion, equivalent to £235,000 for every Norwegian.
The country is one of the biggest investors in the North Sea, with over 7bn barrels of proven oil reserves. In addition to fossil fuels, Norway also owns swathes of the UK's prime real estate, with significant investments in London's West End including stretches of Covent Garden, Regent Street and Soho.
Mr Aasland's comments come as Mr Miliband and Sir Keir Starmer face increasing pressure over their net zero stance following mass blackouts across Spain, Portugal and parts of France earlier this week.
Red Eléctrica, Spain's national grid operator, has since said the power cuts were caused by a drop in solar power generation. Spain has seen a massive increase in renewable and low carbon electricity generation in recent years, with green energy sources replacing fossil fuels such as coal and gas, as well as nuclear.
Spain's Socialist prime minister, Pedro Sánchez, was accused on Wednesday of putting green ideology ahead of energy security.
Alberto Núñez Feijóo, leader of the opposition People's Party, said Mr Sánchez was covering up information about the cause of the power cut and prioritising green ideology in his energy policy.
In the UK there are now growing signs of a civil war within Labour over its green policies after Sir Tony Blair said on Tuesday that the Government's current net zero policies were 'doomed to fail'.
The former prime minister, who has advised Sir Keir informally, appeared to back down on Wednesday and insisted he supported Labour's plan to reach net zero by 2050. However, Downing Street failed to guarantee Mr Miliband would still be in post by the next election.
In addition to banning North Sea licences, Mr Miliband and Sir Keir have increased the so-called windfall levy on oil and gas producers which charges a 78pc tax on their profits.
Asked what the impact of such policies would have had on Norway, Mr Aasland said: 'We would have seen investments going to other places in the world.'
He added: 'I think if you want to support industry for the long-term, you have to be predictable, you have to have a stable framework, and you have to work together with the industry.
'During the pandemic we saw the supply chains for the oil and gas industry were running out of contracts so we made a tax package to the industry so they could develop more resources in a difficult time – and I got a lot of projects approved.
'That means the Norwegian oil and gas production situation now is quite good. Last year, we produced 124bn cubic metres of gas that we exported to the European market. Norwegian production is now at a peak and will stay there for three to five years.'
Norway became Britain's primary source of gas last year as UK output shrank in the wake of the windfall tax and a ban on new licences.
In the year to September 2024 the UK relied on Norway for 29bn cubic metres of gas, supplied by subsea pipeline and costing consumers £10bn.
Another £10bn was spent buying Norwegian oil. It means the UK paid Norway the equivalent of £714 for every UK household last year alone.
Mr Aasland said he expected Norway's one-sided relationship with the UK to continue as net zero policies accelerate the decline of Britain's North Sea energy industry.
He added: 'Norway has 30pc of the European market. We expect more and more European countries will invest in renewable energy which we will also do in Norway, but gas will deliver the base load capacity that is really important to maintain [stability] in electric systems.
'I think the pipeline gas from Norway will be one of the last sources of gas that the UK stops using.'
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
37 minutes ago
- Yahoo
'How Is That Fair?': Victoria Derbyshire Confronts Wes Streeting Over Labour's 'Two-Tier' Welfare Plan
Victoria Derbyshire accused Labour of implementing a 'two-tier' benefits system as she confronted Wes Streeting over the plans. Keir Starmer was forced to make major changes to his government's blueprint for slashing billions from the welfare budget following a backbench rebellion. Under the new plan, current recipients of personal independence payments (PIP) and universal credit will continue to get the same amount of money. However, those who claim in the future will receive less. On the BBC this morning, presenter Derbyshire read out the views of one viewer, called Matt. She said: 'The big concern from a lot of people, including Matt, one of our viewers, is that you are creating a two-tier system. 'He says 'I still don't understand the logic of applying cuts to future applicants. Is that just so there are fewer people who are directly affected to protest the cuts?'. How is it fair that there's a two-tier system?' Streeting, the health secretary, replied: 'You can say that about a number of other systems.' But Derbyshire interrupted to tell him: 'I'm asking about this.' Streeting snapped back: 'Yeah well I'm answering the question, which is when things change and evolve, as you bring in new systems, it does change sometimes from group to group, student finance being an example.' Derbyshire then asked: 'My question is how is that fair?' Streeting said the government needed to make sure the welfare system is 'sustainable'. He said: 'Even before the changes were made this week, the cost of the welfare bill is growing enormously. There's a real risk to it, both in terms of financial sustainability and democratic support and legitimacy.' Disability Charities Urge MPs To Defeat Starmer's Plans For 'Two-Tier' Welfare System Keir Starmer's Authority In Tatters After Humiliating U-Turn On Welfare Cuts 'Has He Got A Grip?': Naga Munchetty Skewers Minister After Starmer's Welfare U-Turn
Yahoo
4 hours ago
- Yahoo
PM and ministers now admit welfare reforms went too far
It was only 10 days ago that embattled Welfare Secretary Liz Kendall, trying to convince MPs to back her reforms, said ministers were "firm in our convictions". People on Personal Independence Payments (PIP) and universal credit were too often being "written off", while the welfare bill was becoming an unprecedented rebellion by Labour MPs forced the prime minister into a significant retreat, today sees an interesting shift in those convictions. Ms Kendall's colleague Wes Streeting, who was drafted onto calls with angry backbenchers, tells Sky News he didn't want disabled people in his constituency surgeries on a Friday, telling him they were worse off when that was not the intention. This is exactly what many Labour MPs and disability groups were arguing was inevitable if current claimants were stripped of their benefits. Sir Keir Starmer, in a series of Sunday newspaper interviews in which he reflects on mistakes, says he now believes there was no point ploughing ahead with something which "doesn't necessarily achieve the desired outcome". Read more: Having rushed forward these reforms to save £5bn in the spending review, it now seems ministers are admitting the package needed more thought. The welfare bill is rising sharply, and many voters broadly support the idea of tackling it. But even if the draft legislation, which will affect new benefit claimants only, is voted through (and that's still an "if'", with dozens of Labour MPs still weighing it up), this debacle - for many MPs at least - goes to the heart of whose side the government is on.
Yahoo
4 hours ago
- Yahoo
What Eluned Morgan's Welsh Labour needs to do to win the Senedd election
On Saturday night, some of Labour's biggest hitters were in a room listening to the findings of hours of polling and analysis about what the numbers show about Labour's electoral chances in 2026. The Welsh Election Study is a comprehensive piece of work that looks at voting patterns and results from the 2024 general election, and the results did not make comfortable listening for Labour but anyone who left that room thinking the words can be ignored would be wrong. The Welsh Government was not popular at the general election, people viewed it negatively, but Labour still did well, because the UK Government was less popular. READ MORE: Eluned Morgan gave three reasons why people should not vote for Nigel Farage READ MORE: Angry farmers take over Welsh town with tractors to deliver Keir Starmer message On key metrics like education and the NHS, people think services have got worse, and it is the Welsh Government's fault. That is clearly a problem for Labour. People think their standard of living has got worse, but for that they blamed the UK Government mainly, but it still wasn't good news for the Welsh Government. That discontent is playing out in polls - more than now one - projecting the party which has had a longstanding record of success in Wales will get 18% of the vote at the Senedd election in just over 10 months time. Of course, it is more than just Labour policies, there are global matters at play, there is a tendency across the western world to turn away from established politics. Populist politicians and parties are doing well the world over. Wars, finances, the economic climate are all things out of Labour's control. But when this room of experts were asked to list the thing they think Labour needs to do, the message was fairly simple. Labour in Wales needs a clear set of simple messages and with a clear intended audience. That's not so hard, is it? Well, maybe. The background is this, UK Labour is targeting its attacks at Reform. But it's not really clear why when you look at who voted for Reform UK in 2024, thus giving us an insight who may do it in 2026. We know Reform is expected to do well in the election in May 2026 and it could end up as the biggest party, so too could Plaid Cymru. With the obvious disclaimers that the election is a long way away, far from the front of most peoples' minds, and that polling is just a snapshot in time, there is one thing crystal clear - no-one expects it to be Labour. And yet, Eluned Morgan keeps talking about Nigel Farage and the danger his party poses. The First Minister made that clear when she said they were a "real danger" to the NHS in Wales, workers rights, public services. However, it isn't (on the whole) Labour voters - the WES data shows - who are going to vote for them. UK Labour keeps targeting Reform policies too - despite the same being true in England too. Reform isn't taking swathes of Labour voters. The support Labour is losing is mainly, Plaid, but also Lib Dems and Greens. Reform is gaining support in Wales is coming from a combination of new voters (those who don't normally vote) and disaffected Conservatives. And yet it was Reform that Keir Starmer, Jo Stevens and Eluned Morgan mainly chose to target - although the latter two did mention Plaid Cymru too. The message from academic experts at the party event was to work out who they are focusing on. The other message that came from the event was that the messages need to be simple. The First Minister told BBC Wales' Sunday Supplement she "I am responsible for making sure the party has a clear sense of direction and purpose within Wales". She spoke on the radio that she was focusing on the "bread and butter issues". And yet, that is one of the biggest criticisms from her within the party - that there isn't clear direction. There are concerns she has far too many communications advisors, and not enough focusing on actual policy, resulting in a scattergun approach. When her party colleagues went to Llandudno, they heard her speech cover the bases you'd expect - well rehearsed pledges about waiting times and potholes - and she added in commitments to mental health and £5m to tidying up towns (albeit divisible by 22 local authorities) but there was also an eight minute segment about Artificial Intelligence committing money, resources, and now a pre-election pledge to something, quite frankly, something that many simply don't understand how Wales would ever have a stake in. There was widespread confusion why, in a central speech at a crucial time, the First Minister spent eight minutes of her speech talking about AI and committing £2.5m to the development of "excellence zone" in Wales. It was, more than one person said, typical of the chaotic approach at the top of Welsh Labour, with ideas switched between at the drop of a hat. No-one really saw that coming, and knows what it actually means in Wales, nor what £2.5m of funding can actually do to achieve. It is just pennies in a vast virtual ocean. She is facing repeating questions too about her influence on Keir Starmer's government. While Eluned Morgan kept telling journalists that Welsh Government pressure had helped force the welfare u-turn, but the pressure came from rebelling MPs. When Eluned Morgan's Welsh Government wrote a letter detailing the impact the welfare cuts will have on Wales, only five MPs signed it. So it's no surprise she faced questions what her role as Welsh Labour leader means in terms of the 27-strong bloc of MPs who represent Wales. Eluned Morgan says the next election is a "moment of reckoning". She isn't wrong. When we asked her if this focus on Nigel Farage risked glamorising the party too much sway in Wales she was clear, "there is nothing glamorous about Reform". The problem she has is convincing people there is something glamorous about Welsh Labour.
