One of the Labour Party’s most prominent financial backers has called on Energy Secretary Ed Miliband to stop exports of North Sea oil and gas, warning that the escalating conflict with Iran could leave the UK dangerously exposed to fuel shortages.
Dale Vince, founder of green energy company Ecotricity, told the Daily Telegraph that the government should instruct operators to prioritise domestic supply if markets tighten. He described it as “bonkers” to continue sending British barrels overseas while households and businesses face rising energy costs. “We can ban exports from the North Sea. China have done it,” he said, highlighting Beijing’s willingness to prioritise domestic consumption during times of strain.
Britain produces around 53 million tonnes of crude annually, most of which is exported to refineries in the Netherlands, Poland, and other countries. The UK then imports roughly 51 million tonnes to meet domestic demand, leaving it fully exposed to global price swings. The recent closure of the Strait of Hormuz by Iran has tightened international oil and liquefied natural gas supplies, sending Brent crude from $77 to about $109 per barrel. Wholesale gas prices have risen by roughly 75 per cent, pushing pump prices higher and prompting warnings of a steep increase in household energy bills.
The crisis has reignited debate over Britain’s energy security, with some industry voices urging Mr Miliband to approve drilling at the Rosebank and Jackdaw fields. Reports suggest the Energy Secretary may approve Jackdaw while blocking Rosebank, a move expected to intensify disagreements within the sector.
Mr Vince remains opposed to new field expansion but called for extracting maximum value from existing North Sea reserves. He proposed offering operators contracts for difference, a mechanism usually used in renewable energy, to prevent “a cliff-edge event where operators walk away because prices collapse.”
The suggestion is likely to meet resistance from private producers who rely on international sales for most of their revenue. Yet Mr Vince argued that current policies leave domestic production tied to volatile global markets. “We’re back to a situation where whatever we make in the North Sea costs us the global price,” he said. He contrasted this with the United States, which limits certain fuel exports and has long benefited from lower domestic gas prices.
He also warned that Britain’s dependence on the US for energy imports, which account for around 30 per cent of UK crude, poses a strategic risk. “It alarms me to be reliant on the US for anything,” he said, calling for greater independence from Washington. Ultimately, he argued, the long-term solution is to reduce reliance on hydrocarbons entirely. “The answer is to get off fossil fuels and to break the link between the global price of fossil fuels and those that we make in our country.”
A government spokesperson defended the current approach, noting that the UK benefits from a “strong and diverse mix of fuel supply” and that domestic refinery output exceeded demand in 2025, leaving a surplus for export.