The boss of Ithaca Energy PLC (LSE:ITH) has warned the UK could be “starved” of North Sea energy under energy plans proposed by the Labour Party.
Labour leader Sir Keir Starmer last week said the party would grant no licences to explore fresh fields in the North Sea, calling a wait until UK oil and gas runs outs an “historic mistake”.
But Ithaca's executive chairman has warned such a ban and existing taxation policy was putting off investors and threatened energy security.
Gilad Myerson told the BBC: “By a new government imagining they’ll be able to stop licences and oil development in the UK, ultimately what that means is that they’ll be starving the UK of energy, and it will become very dependent on energy from abroad."
“Politicians keep making statements which spook investors. You have to make sure that the environment is stable because this is a project that will last for 10 years."
North Sea oil and gas is traded on international markets and the prices are set globally, but Mr Myerson insists much of it is used domestically, and it therefore has a lower carbon footprint than energy imported from abroad.
"Most of the hydrocarbons in the UK are developed and are produced for the UK market. Some of the oil will go to refineries abroad, but will ultimately make its way back to the UK," he said.