The case for public ownership of energy

 Yesterday I heard Darren Jones, Chief Secretary to the Prime Minister, being interviewed by LBC presenter Nick Ferrari. Nick Ferrari asked him whether, since energy prices were likely to rise as a result of the US and Israeli strikes on Iran and the Iranian attacks around the Middle East in response, it would be a good idea for the government to revise its current stance of not issuing new licences to drill for oil in the North Sea. Why not "drill, baby, drill", asked Ferrari, quoting President Trump. Darren Jones pointed out that this would not help reduce anyone's energy bills, because of the fact that oil prices are set on the global market and would thus be subject to the same inflationary pressures as those affecting oil from all other sources. I heard Energy and Net Zero Minister Ed Miliband make the same argument a couple of weeks ago to explain why issuing new North Sea oil drilling licences is not part of the government's plans to reduce energy bills.

Presumably, the only reason that the price of North Sea oil is "set on the global market" is the fact that it is currently extracted by private companies who are able to take advantage of the global inflation in oil prices and charge similar prices themselves, even though they are not directly impacted by the current turmoil in the middle east. Where North Sea oil to be produced and distributed by a publicly owned entity, prices could be decided at government level on the basis of protecting UK citizens and companies from the inflationary effects of the current Middle East conflict. Surely, this is a clear demonstration of the need for strategic and essential resources to be, where possible, in public rather than private hands. In the absence of full nationalisation, at the very least, the licence fees could be used to reduce the impact of energy inflation during turbulent periods such as the one we are potentially about to experience.