A senior Labour MP and chair of the Commons energy security and net zero committee, Bill Esterson, has signaled openness to reconsidering the party’s current ban on new oil and gas drilling licences in the North Sea. His remarks suggest a possible shift in government policy and contrast with the position of Ed Miliband, Labour’s energy chief and a leading contender to become chancellor under a potential Andy Burnham-led administration.

Labour imposed a temporary ban on new North Sea licences last year amid its net zero commitments, with plans to make the ban permanent. Esterson, however, indicated that evidence presented to his committee and feedback from employers and trade unions point to the need for greater certainty around oil and gas production. He highlighted that a small change in policy, including approval of projects such as the Rosebank and Jackdaw developments, could deliver benefits for the broader energy sector.

In a social media post, Esterson referenced criticism from former U.S. President Donald Trump aimed at Miliband but nuanced his position by expressing continued support for Labour’s energy leadership. He described Trump’s remarks as aligned with an “anti-energy transition coalition” narrative and called for the government to adopt a more assertive tone. Esterson stressed the importance of clearly communicating how workers in the oil and gas sector would transition to future energy roles, arguing that ambiguity risks fostering perceptions that the government is abandoning those workers.

Esterson’s comments align with concerns expressed by the GMB union’s general secretary, Gary Smith, who recently described the licence ban as “economic madness,” reflecting anxiety within parts of Labour’s union base over potential job losses and energy security.

The government has maintained that issuing new licences to explore undiscovered fields will not enhance energy security or reduce consumer bills. A spokesperson emphasized plans for the North Sea to become a hub for clean energy, supporting an estimated 40,000 jobs in Scotland by 2030.

The debate within Labour reflects broader tensions between climate goals and economic considerations in the energy sector. While Miliband and others remain committed to ceasing new fossil fuel developments to meet net zero targets, figures like Esterson suggest a more nuanced approach may be necessary to address the concerns of industry stakeholders and workers dependent on oil and gas production.