Labour accused of killing off investment in North Sea after oil and gas projects fell 81 per cent, report finds

See more Daily Mail on Google - save us as a Preferred Source Published: 19:02 EDT, 31 August 2026 | Updated: 19:31 EDT, 31 August 2026 Labour was accused of killing off investment in oil and gas last night after projects fell by 81 per cent, according to a report.The EY UK Attractiveness Survey found the number of UK oil and gas projects plummeted to three last year, down from 16 the year before.It came after Labour's ban on new drilling in the North Sea and after several key Net Zero targets were accelerated amid the rush to ramp up renewables.Labour said in its manifesto it would ban new oil and gas licences and has continued with a windfall tax on the sector.However, Prime Minister Andy Burnham has signalled a shift in Labour's position after taking over from Sir Keir Starmer and he could give the go-ahead to new oil and gas drilling in the North Sea this month.Miatta Fahnbulleh, the energy secretary, is poised to approve drilling for gas at Jackdaw off the coast of Aberdeen in the North Sea.A decision on Rosebank, an oil and gas field, will likely be deferred, however. The EY UK Attractiveness Survey found the number of UK oil and gas projects plummeted to three last year, down from 16 the year before The EY report also found there was a 51 per cent drop in the rate of energy-related Foreign Direct Investment (FDI) projects in the UK in 2025, down from 55 projects in 2024 to 27 last year.This was the lowest annual total since 2013 and means the UK remains second behind France in the most attractive European locations for energy FDI investment projects.The Tories' shadow energy minister Greg Smith said: 'Labour have gone down the rabbit hole of so-called green dogma.'The net result is the whole country suffers on energy security and prosperity.'According to Labour's own figures, more than 100,000 jobs are set to vanish in the North Sea oil and gas sector over the next 25 years.The loss will represent a fall of 80 per cent between 2024 – when the party won the election – and 2050.As early as 2030 a total of 54,268 jobs are predicted to have been lost, and by 2035 more than half the workforce will have lost their jobs with 77,783 posts gone.Rosebank is the largest untapped oil field in the North Sea and lies some 80 miles north-west of Shetland, while Jackdaw is about 150 miles east of Aberdeen.Mr Burnham has previously said: 'We won't be able to stop using oil and gas for some time, that's just a fact.'The question is whether we can accelerate use of it so that we pay for the transition, and one thing helps the other... whether that extraction can be the bridge to the clean energy future we need, and bring it forward.'But he faces opposition from his backbenchers who want him to pursue Net Zero goals, but also from those in Scotland who want to save the oil and gas industry.Developers say approving the sites could support more than 3,500 jobs and generate more than £20billion.Annie Graham, of EY, said: 'The UK has an opportunity to support future investment in the sector and build on its perceived advantages around renewable energy by accelerating grid connection times and wider planning reform to persuade developers to contribute capital to energy infrastructure. 'With high energy costs for business continuing to be a key concern for international investors, initiatives to encourage greater domestic energy production are also welcome and should help to improve price competitiveness in the UK energy market, as will the Government's recent commitments to delinking electricity and gas prices.'