Economic lunacy to ignore North Sea oil

RECESSION FEARS AFTER GLOOMY ECONOMIC GROWTH

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The area for oil and gas, "bringing back good jobs to the UK". He writes in the Daily Express today: "It is economic lunacy to ignore our rich energy reserves.

The warning was sounded as figures reveal the UK economy stagnated in January — even before the outbreak of conflict in the Middle East, which triggered a major energy shock.

Analysts called the overall economic picture "subdued" and described flatlining gross domestic product as a "disappointing start to the year". Fears are mounting that Britain may even tip into recession as fighting continues.

It all makes for grim reading for Chancellor Rachel Reeves, who has pinned her hopes on improving economic growth. She said the gloomy data comes "amid an uncertain world" but insisted: "Our economic plan is the right one, but I know there is more to do."

The Chancellor and Energy Secretary Ed Miliband held an emergency Downing Street summit with petrol retailers yesterday over soaring fuel prices as they desperately try to get a grip on the situation.

But with the country struggling to meet its energy requirements, there are increasing demands for the government to approve two further gas developments — in the Rosebank and Jackdaw fields — and to allow further exploration in the North Sea.

Labour has put a block on new oil and gas licensing in the area in a move aimed at tackling climate change, preventing new exploration zones. Existing licenses carry on, while fresh drilling in existing fields is also allowed.