Swinney shifts position on North Sea drilling amid 'unprecedented' energy crisis
The First Minister said ordinary people will pay the price
John Swinney has signalled a major shift in the SNP's position on new oil and gas developments due to the "huge volatility" caused by the war in Iran.
The First Minister said the disruption in the Middle East had changed the "dynamics" of the debate around developments such as Rosebank and Jackdaw given the “perilous” security of energy supply.
Climate compatibility tests could determine whether domestic production was more environmentally friendly than higher carbon imports, he added.
The comments mark a clear departure from the position taken by his predecessors, Nicola Sturgeon and Humza Yousaf.
It comes as Mr Swinney demands that the House of Commons is recalled to discuss the energy crisis and the impact on the cost of living.
During an event held by the Holyrood Sources podcast in Edinburgh, Mr Swinney was asked whether he would back plans to develop the huge Rosebank oil field off Shetland and the Jackdaw gas field 150 miles east of Aberdeen.
The First Minister said key factors to be considered included whether the projects were compatible with commitments on emissions and net zero.
But, he added: "That assessment on climate compatibility has to be undertaken. But I think the thing that's changed is the geopolitical situation that is surrounding us just now, and the huge volatility that we're now dealing with.
"One of the other factors that we've always said has to be looked at in this question is around energy security, and I think there is now much greater uncertainty about energy security as a result of what I would consider to be an illegal intervention in Iran and all the chaos that's been created in our global markets as a consequence. So I think the dynamics of that change as a consequence.”
He said that he couldn’t give an definitive answer on Jackdaw and Rosebank given the climate compatibility assessment had to be undertaken.
"But what I'm saying to you is that I think we've got to look at the geopolitical situation we now face and recognise that we are experiencing much greater risk to our energy security as a consequence of what's happening there, and also because there is not an elegance, as I have referred to it, in the transition to a new renewables future,” Mr Swinney added.
The UK government continues to consider whether the development of Rosebank can go ahead. It is the UK’s largest untapped field, containing up to an estimated 300 million barrels of oil.
Mr Swinney said imported oil and gas could be more damaging to the climate, while supply could also be disrupted, such as by events in the Middle East.
"I think that context changes the balance of arguments,” he said. “What we have always said in all of our communications about oil and gas is that there must be a climate compatibility assessment undertaken, indeed as I've said already, I think that's now required by law.
"And secondly we must be very, very mindful of the issues on security of supply, which is now in a more perilous position today than it was if we were having this conversation four weeks ago.”
The First Minister added: "We're going to have to use hydrocarbons for some time to come. And if we are importing that, and that is a higher carbon threshold than domestic production, then we've got to - my argument would be we should prefer domestic production over imported production.
"And also that we take into account the impact of energy security questions on our ability to be confident that we can actually source that oil and gas in the years to come."
Mr Swinney has called for the House of Commons to be immediately recalled from its Easter recess in order to deliver support for people hit by the “unprecedented energy crisis” caused by the war in Iran.
The First Minister said Sir Keir Starmer is “sleepwalking into a crisis and it will be ordinary people who pay the price”.
The conflict in the Middle East continued yesterday as US President Donald Trump vowed to continue “blasting Iran back to the Stone Ages” until the critical Strait of Hormuz shipping lane is reopened.
The First Minister said: “We are facing an unprecedented energy crisis with motorists being hammered at the petrol pumps and households facing unaffordable energy bills while the UK government is doing nothing.
“Labour are sleepwalking into a crisis and it will be ordinary people who pay the price.
"Our European neighbours like Ireland and Spain have already taken action to protect their people from the crisis and have stepped up with billions of pounds in support. Yet the Prime Minister stands by like a rabbit in the headlights doing nothing.
“I am calling today for the House of Commons to be recalled from its recess, so that the UK government can be forced into taking action to support people.
“And if the UK government are not willing to take action to support people, they should hand over the powers to a government that will."
Meanwhile, Chancellor Rachel Reeves said she is “angry” Mr Trump launched the war without a “clear plan” and warned of economic hardship hitting Britain amid skyrocketing global oil prices.
Global energy costs have risen sharply following the war in Iran, which has disrupted shipping through the Strait of Hormuz, a vital route carrying around a fifth of the world’s oil supply.
Households are shielded in the short term by Ofgem’s price cap, which is set every three months, but the conflict has already pushed up the price of petrol, diesel and heating oil.
Fuel duty is frozen until September, with the rise scheduled for then under review as a result of the high prices, but other countries, including Australia, have already taken action to reduce the impact of price hikes for drivers.
Scottish Conservative energy spokesman Douglas Lumsden said the First Minister was adding to the financial pressures facing families.
He said: “John Swinney has some brass neck posing as their champion when he has landed them with the highest tax bills in the UK while his arbitrary net zero targets are piling the costs on households.
“The Scottish Conservatives are the only party with a common-sense plan to ease the cost of living by cutting taxes and reducing fuel bills by supporting all available energy sources – oil and gas, nuclear and renewables.
Fuel duty is frozen until September, with the rise scheduled for then under review as a result of the high prices, but other countries, including Australia, have already taken action to reduce the impact of price hikes for drivers.
A UK government spokesperson said: “The PM has responded decisively to the pressures facing households and set out a clear plan to address the impact of the conflict on families at home. This includes cutting the energy price cap by £117, extending the fuel duty cut until September and supporting families facing rising heating oil costs.
“Parliament rising for the Easter recess is a long‑standing convention and does not prevent the Government from acting or continuing to engage with industry, parliamentarians and devolved administrations as we have done throughout this crisis.
“We want to work constructively with the Scottish Government to focus on delivery, and for them to play their part in supporting people across the UK.”
The extent of the economic disruption could depend on US President Donald Trump’s approach to the Strait of Hormuz, through which around a fifth of the world’s oil and gas is shipped.
He has indicated he is prepared to walk away from the military campaign he started with Israel against Iran without securing the reopening of the vital maritime chokepoint.
Britain is seeking to lead a diplomatic initiative, understood to include 35 countries such as France, Germany and some Gulf nations, to reopen the passage, but Sir Keir Starmer has admitted restoring the flow of global trade will not be easy.
The US president has repeatedly criticised the UK and other allies for the extent of their involvement in the conflict, and said that those who did not take part in strikes against Tehran should secure the Strait of Hormuz themselves and “go get your own oil”.
The AA has advised drivers to reduce their speed by 10 per cent in response to the oil crisisprices, saying that slowing down by that amount "improves fuel efficiency" while still "keeping up with the flow of traffic".
It advised motorists to avoid "continuous harsh braking" by anticipating traffic lights, roundabouts and changing traffic flow.
AA president Edmund King said: "It is well worth drivers adapting their driving style and speed both to save money and enhance safety.
"We estimate that diesel drivers can save £10 per tank by changing their driving style."
Mr King also advised drivers to use fuel price comparison apps to find the cheapest petrol or diesel for their journeys.
"Often there are price discrepancies up to 19p per litre within short distances", he warned.
The UK government was approached for comment about Mr Swinney’s call.
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