This Will Only Increase Energy Prices for the Already Struggling UK
In a move that reeks of ideological overreach, climate activists and stringent environmental regulations have effectively halted development of Rosebank, Britain’s largest untapped oilfield. Located 130 kilometers northwest of Shetland in deep waters, Rosebank holds an estimated 336 million barrels of oil equivalent, including 210 million barrels of oil and 177 billion cubic feet of gas. At peak production, it could deliver 70,000 barrels per day, covering around 7% of the UK’s domestic oil demand.
But thanks to a 2024 ruling by Scotland’s Court of Session, which mandates that Environmental Impact Assessments (EIAs) now include downstream Scope 3 emissions from the burning of extracted fuels—not just operational ones—the project is on indefinite hold.
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This delay pushes development drilling from Q2 2025 to early 2026 at best, with first oil potentially slipping beyond 2026-2027.
Operated by Norwegian giant Equinor with Ithaca Energy as a minority partner, Rosebank was poised to bolster UK energy security amid a sharp decline in North Sea production—from 1.1 million barrels per day in January 2020 to just 570,000 in July 2025.
Instead, this suspension accelerates the UK’s slide into greater reliance on imports, exposing the nation to volatile global prices and geopolitical risks. As if the cost-of-living crisis wasn’t biting hard enough, this decision will only drive up energy bills for households already grappling with inflation and stagnant wages.
The Grip of Net Zero Fanaticism
At the heart of this fiasco is the UK’s relentless pursuit of Net Zero emissions by 2050, a policy that prioritizes virtue-signaling over practical energy needs. The government is legally bound to slash emissions by 68% by 2030, 81% by 2035, and reach full Net Zero by mid-century.
While proponents claim the net costs will average just 0.2% of GDP annually, the reality is a tangled web of regulations that stifle investment and inflate prices. Britain’s push for clean power has already led to soaring electricity costs, complicating the transition and leaving consumers footing the bill.
The energy crisis, exacerbated by events like the Russia-Ukraine war, has highlighted how Net Zero ambitions disrupt supply chains and amplify price volatility.
Opponents of Rosebank argue that approving it would “lock in” fossil fuel dependency and undermine climate commitments,
but this ignores the field’s potential to generate billions in profits for developers while providing stable, domestic energy. New guidance from June 2025 expands EIAs to Scope 3 emissions, aligning with Net Zero but effectively dooming projects like Rosebank.
The result? A faster decline in homegrown production, more imports, and higher exposure to international shocks—precisely when the UK needs energy independence.Carbon Taxes: A Stealthy Burden on EnergyAdding insult to injury, the UK’s carbon pricing regime piles on costs for producers and consumers alike. The Carbon Price Support (CPS) slaps an additional £18 per tonne of CO2 on the power sector, on top of the UK Emissions Trading Scheme (ETS).
Overall, explicit carbon prices cover 52.5% of the nation’s greenhouse gas emissions,
with a new Carbon Border Adjustment Mechanism (CBAM) set to levy charges on imports from low-carbon-price countries starting in 2027.
This “leveling” aims to protect domestic industries but inevitably trickles down to higher energy prices.
The CPS, introduced in 2013, has proven effective at curbing emissions from power generation, but at what cost? It discourages fossil fuel use while making renewables appear more competitive—artificially, through taxation. For oil and gas firms eyeing fields like Rosebank, these taxes amplify regulatory uncertainty, deterring the billions in investment needed to extract resources efficiently.
Windfall Taxes: Punishing Success in a Volatile Market
If Net Zero and carbon taxes weren’t enough, the UK’s Energy Profits Levy (EPL)—a blatant windfall tax on oil and gas companies—further hammers the industry. Introduced in 2022 at 25%, it was hiked to 35% and then 38% by the Labour government in October 2024, pushing the overall tax rate to a staggering 78%
Extended until March 2030 (or 2029 in some announcements), this levy targets “excess” profits from high global prices, but it ignores the cyclical nature of the sector.
Critics rightly point out that it drives away North Sea investment, with companies like Equinor facing a “quid pro quo” dilemma: higher taxes in exchange for vague stability promises.
The headline rate jumped from 40% pre-levy to 75-78%,
making the UK one of the harshest regimes globally. This not only discourages new projects like Rosebank but also accelerates field abandonments, reducing supply and jacking up prices for UK consumers.
The Real Victims: UK Households and Energy Security
Shuttering Rosebank isn’t just about one field—it’s a symptom of a broader assault on fossil fuels that will leave Britain colder and poorer. With production plummeting, the UK becomes a net importer, vulnerable to OPEC whims and supply disruptions. Energy prices, already inflated by the Net Zero transition,
will spike further as imports rise. Skilled jobs in the North Sea hang in the balance, and the economic ripple effects could cost billions. It’s time to call out the climate zealots for what they are: ideologues whose policies prioritize distant environmental goals over immediate human needs. The UK must rethink this self-sabotage—ease the tax burdens, streamline approvals, and harness domestic resources like Rosebank. Otherwise, the already struggling British public will pay the price, quite literally, at the pump and on their bills.
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