The UK government has said expanding oil and gas drilling in the North Sea would increase exposure to volatile global energy markets, as political divisions intensify over the country’s long-term energy strategy.

Energy secretary Ed Miliband told Labour MPs that continued reliance on fossil fuels leaves the UK vulnerable to external price shocks. He argued that recent geopolitical tensions, including the ongoing conflict involving the United States and Iran, have reinforced the risks associated with global gas markets.

Miliband said the central lesson from recent crises was that countries dependent on fossil fuel imports remain “price takers not price makers,” and therefore exposed to fluctuations beyond their control. He added that accelerating the transition to domestically generated clean power is essential for achieving what he described as “energy sovereignty” and strengthening national security.

Energy minister Michael Shanks echoed this position, stating that the UK must reduce its exposure to fossil fuels to prevent households from bearing the cost of international disruptions. He said previous price shocks had already demonstrated the economic risks tied to dependence on gas markets.

The government’s stance has been challenged by opposition parties and some Labour MPs, who argue that domestic oil and gas production remains critical for energy security and economic growth.

The Conservative Party is expected to use a parliamentary debate to call for the removal of restrictions on new North Sea drilling. Its proposals include scrapping the windfall tax on oil and gas companies, lifting the ban on new exploration licences, and approving projects such as the Rosebank oil field and the Jackdaw gas field.

Shadow energy secretary Claire Coutinho said increasing domestic gas production would help meet national demand and reduce reliance on imports. She argued that failing to develop available resources during a period of supply instability would undermine energy security.Within the Labour Party, dissent has also emerged.

MP Henry Tufnell called for a reassessment of the current policy, suggesting that renewed drilling could support economic activity, reduce unemployment in industrial regions and limit the offshoring of carbon emissions. However, other Labour MPs indicated that there was limited support for reversing the party’s existing commitments.

Chancellor Rachel Reeves is expected to outline measures aimed at mitigating the impact of rising energy costs linked to geopolitical tensions. These include proposals to protect consumers from higher bills driven by disruptions in global oil and gas markets.

Reeves is also expected to introduce a framework to address potential profiteering, particularly in the retail fuel sector. The measures are intended to prevent excessive price increases in response to international events, including recent military activity involving Iran and its regional counterparts.

Miliband defended the continuation of the windfall tax on energy companies, stating that it has generated approximately £12 billion in revenue since the onset of the Russia-Ukraine war. He argued that removing the levy would primarily benefit corporate profits while reducing the government’s capacity to support households facing higher energy costs.

The government has positioned investment in clean and nuclear energy as a central component of its long-term strategy. Officials say reducing reliance on fossil fuels will help stabilise energy prices and insulate the economy from external shocks.

Reeves is expected to confirm that recommendations from the Fingleton review, aimed at accelerating nuclear power development, will be implemented through legislation. These reforms are intended to streamline project approvals and reduce delays linked to legal challenges.

The government is also considering mechanisms to provide indemnities for critical energy infrastructure projects, allowing them to proceed more quickly in the face of litigation. This approach is designed to address longstanding barriers to large-scale energy development.

According to a government spokesperson, the strategy includes £120 billion in public investment across energy infrastructure, including support for the Sizewell C nuclear plant and the development of small modular reactors in north Wales. These projects are intended to expand domestic energy capacity and reduce exposure to imported fuels.

Ministers argue that prioritising domestically controlled energy sources will enhance resilience against future crises while supporting economic stability.

The debate over North Sea drilling highlights a broader policy divide between short-term supply measures and long-term structural transition within the UK’s energy system.

At an international energy forum in Athens, the United States reaffirmed its support for reliable oil and gas supplies while encouraging innovation and investment in renewable energy to ensure global energy stability and economic growth.

The United States has reiterated its commitment to energy security in Europe by emphasizing a balanced approach that includes both traditional energy sources and the gradual integration of renewables.

Speaking at a major international energy conference in Athens, senior U.S. energy officials highlighted the importance of maintaining dependable oil and gas supplies while continuing to invest in new technologies that enhance sustainability and efficiency.

U.S. Energy Secretary Chris Wright stressed that global energy transitions must be practical and inclusive, ensuring stability while advancing toward cleaner solutions.

He noted that while renewables have made important progress, oil and gas remain essential to supporting Europe’s immediate energy needs — particularly as the continent continues to reduce its reliance on Russian energy imports.

“The United States stands ready to support Europe with secure, reliable, and affordable energy,” Wright stated, emphasizing ongoing cooperation between U.S. energy firms and European nations.

This partnership has already resulted in multiple agreements to expand natural gas supplies and strengthen transatlantic energy infrastructure.

The U.S. shale boom has positioned the country as one of the world’s leading exporters of oil and gas, supplying nearly one-fifth of global output.

This capacity enables the U.S. to act as a stabilizing force in international energy markets while supporting Europe’s diversification goals.

While acknowledging challenges in renewable energy development, U.S. officials encouraged continued investment in technologies such as wind, solar, and hydrogen.

Wright pointed out that over $4 trillion has already been invested globally in renewable infrastructure — a testament to growing international commitment.

However, he emphasized the need for realistic timelines and balanced energy policies that maintain economic growth and energy reliability.

U.S. Interior Secretary Doug Burgum added that the future of energy lies in “addition rather than substitution,” noting that emerging technologies should complement, not replace, existing resources.

He called for innovation-driven strategies that expand the global energy mix while ensuring resilience against supply disruptions.

The discussions in Athens also highlighted alignment between the U.S. and its European partners on long-term sustainability goals, even as approaches differ.

The European Union recently reaffirmed its target of reducing emissions by 90% by 2040, reflecting a shared commitment to climate responsibility and technological advancement.

Experts at the conference agreed that collaboration between major producers and renewable innovators will be essential in shaping a secure and sustainable energy future.

The U.S. continues to advocate for a pragmatic energy framework — one that secures today’s needs while building tomorrow’s cleaner systems.

This balanced vision underscores the U.S. role as both a global energy leader and a partner in innovation, combining traditional strength with forward-looking investments in renewable capacity, efficiency, and climate adaptation.