Industry leaders and trade unions are urging the Government to approve production at two major North Sea energy projects, warning that failure to do so could worsen Britain’s energy crisis and threaten manufacturing jobs.

Calls have been directed at Ed Miliband, with business groups arguing that approval of the Rosebank oil field and the Jackdaw gas field would help ease soaring energy prices triggered by conflict in the Middle East.

Manufacturers and unions say the projects should be fast-tracked after the recent war involving Donald Trump and Iran drove oil prices towards $100 per barrel, placing additional strain on British industry.

Factories warn of growing pressure

Industry group Make UK said factories are already struggling with historically high energy costs and warned that further increases could damage the country’s manufacturing base.

Stephen Phipson, the organisation’s chief executive, said manufacturers want the Government to move quickly on both developments to protect energy security and limit rising costs.

He said the conflict in the Middle East had created new pressures for the sector and could accelerate the decline of British industry if energy prices remain high.

Phipson added that although manufacturers are investing in renewable energy, access to domestic energy supplies is essential in the short and medium term.

Union leaders also back drilling

Trade unions representing oil and gas workers have also urged ministers to unlock North Sea production.

Unite the Union said blocking new developments risks jobs and undermines national energy security.

The union’s general secretary, Sharon Graham, warned that preventing production in the current climate would be politically damaging and harmful to workers.

She said domestic gas from the Jackdaw field and oil from Rosebank are important for both employment and the country’s energy resilience.

Major North Sea reserves

The Rosebank field, located about 60 miles west of Shetland, is the largest undeveloped oil field in the UK sector of the North Sea. The reserve lies more than 5,000 feet beneath the seabed and could produce up to 500 million barrels of oil.

The Jackdaw field lies around 150 miles east of Aberdeen and contains mostly natural gas. If approved, it could account for between 6 and 7 percent of the UK’s production and could begin supplying gas to the national network as early as this summer.

Additional domestic gas supplies could reduce Britain’s reliance on expensive liquefied natural gas imports, although energy prices are still largely set on global markets.

Government divided over approvals

The decisions could prove politically sensitive for the Government. Approving extraction could provoke criticism from Labour MPs and climate campaigners who oppose new fossil fuel developments.

However, ministers are under increasing pressure as energy prices surge and concerns grow about the future of British industry.

Chancellor Rachel Reeves is also believed to be pushing for North Sea resources to be developed as part of efforts to support economic growth.

Miliband has previously argued that new exploration licences in the North Sea would not reduce energy bills for households.

Environmental groups push back

Environmental campaigners have strongly criticised calls for the projects to proceed.

Uplift said the developments would do little to lower bills and would instead benefit foreign investors.

Its executive director, Tessa Khan, said the Rosebank project would not meaningfully reduce the UK’s reliance on energy imports and that much of the oil would be exported.

She also argued that profits from the project would largely go to international companies rather than the UK.

Legal challenges continue

The projects have already faced legal hurdles. A previous decision by the Government to allow drilling at Rosebank was overturned by the Court of Session last year, which ruled that the environmental impact assessments had not fully accounted for carbon emissions.

The court also blocked development at the Jackdaw field on similar grounds.

Energy company Equinor resubmitted an application to develop Rosebank in October. Both Rosebank and Jackdaw already hold licences but still require final approval from the Energy Secretary before production can begin.