Oil and gas restraint ‘baffling’ says ambassador – Daily Business

Britain’s refusal to exploit its North Sea oil and gas reserves is “baffling”, according to the US ambassador.

Telling an audience that energy costs are the main barrier to economic growth, Warren Stephens said Britain had “extensive” supplies “within its reach”, most notably in the North Sea.

“But instead of harnessing these oil and gas reserves, the UK is choosing to import energy from other nations at great cost to its taxpayers and often from the same fields the UK could be using itself,” he said.

“And I will be frank: from a US perspective, this approach is baffling.”

The ambassador, speaking at a CEO Summit in London organised by The Times, said the UK should also exploit its shale to “create jobs, reduce prices and boost tax receipts”.

Being a global leader in AI, fintech, pharma, steel manufacturing and more relies on cheap power, he said.

Mr Stephens said the UK had higher energy costs than other big nations, which was holding back growth.

The battle over oil & gas was a key battleground in the Aberdeen South by-election. Energy Security Secretary Ed Miliband has argued that increasing production from the North Sea will not cut household bills, nor improve energy security which would be better served by moving away from fossil fuels.

Mr Stephens told the summit that he had had one meeting with Mr Miliband, which “didn’t really go all that well” and that there had not been a second.