Key Points
- Energy Secretary Ed Miliband has received a formal invitation to visit Aberdeen from Douglas Lumsden, the Conservative candidate in the Aberdeen South by-election
- Lumsden accused the UK Government of pushing the oil and gas industry into “extinction” through its decision not to reverse the ban on new oil and gas field exploration licences
- The by-election follows Stephen Flynn’s election to Holyrood, vacating the Aberdeen South Westminster seat scheduled for polling on 18 June 2026
- Energy firms EnerMech and Xodus Group recently announced job cuts in Aberdeen, adding to thousands already lost in the sector
- Lumsden listed 13 major companies including Harbour Energy, BP, Apache, Chevron, and Wood Group that have signalling intentions to downsize
- The Conservative candidate noted Miliband has not visited Aberdeen for more than 18 months
- A UK Government spokesman stated new licences “cannot give us energy security and will not take a penny off bills”
- Conservative Leader Kemi Badenoch called the by-election a “referendum on the future of the North Sea oil and gas industry”
- The government plans to create over 40,000 new clean energy roles in Scotland by 2030
- GMB Union General Secretary Gary Smith accused the government of pursuing an “ideological approach” to energy policy that is “destroying” jobs
Energy Secretary Ed Miliband has been formally urged to visit Aberdeen as Conservative by-election candidate Douglas Lumsden accused the UK Government of pushing the oil and gas industry toward “extinction” through its permanent ban on new exploration licences. The dispute has become the central issue in the Aberdeen South constituency by-election on 18 June 2026, with oil and gas job losses dominating the campaign as EnerMech and Xodus Group recently announced redundancies in the city dubbed the oil and gas capital of Europe.
What is the Aberdeen South by-election and why is it happening now?
The Aberdeen South Westminster by-election has been called after former SNP Westminster leader Stephen Flynn was elected to Holyrood, winning the Aberdeen Deeside and North Kincardine constituency in the recent Scottish Parliament election. Nominations concluded for the election scheduled for Thursday 18 June 2026, with seven candidates competing including Richard Thomson (SNP), Douglas Lumsden (Scottish Conservative and Unionist), Jo Hart (Reform UK), Nurul Hoque Ali (Scottish Labour Party), Mel Sullivan (Scottish Liberal Democrats), Jörg Shelton Eckstein (Scottish Greens), and David Ballantine (Alliance for Democracy and Freedom).
As reported by the BBC, Flynn enjoyed a comfortable lead of nearly 4,000 votes in the previous Aberdeen South vote, but a robust challenge from the Conservatives reduced his majority to just over 1,200 votes in the Holyrood election. The Conservatives are making a concerted effort to capture this seat, with Douglas Lumsden, who was sworn in as an MSP last month, as their candidate.
Who is Douglas Lumsden and what did he say in his letter to Miliband?
Douglas Lumsden, the Tory candidate who launched his Westminster campaign just hours after being sworn in as an MSP last month, wrote a formal letter to Energy Secretary Ed Miliband accusing the UK Government of pushing the industry into “extinction”. As reported by the Evening Standard, Lumsden stated: “Your decision in the King’s Speech not to reverse the ban on licences for new oil and gas field exploration could be the final nail in the coffin for many businesses, and with it Aberdeen’s economy”.
The Conservative MP hopeful said to the Press and Journal: “Over the last week, EnerMech and Xodus Group became the latest oil and gas companies to announce that jobs were at risk, adding to the thousands that have already been lost due to your hostility towards the sector”. Lumsden added that banning licences “doesn’t reduce demand, it only increases our reliance on imports, threatens jobs and pushes up prices even further”.
Which companies are cutting jobs and downsizing in Aberdeen’s oil and gas sector?
As reported by the AGCC, Lumsden listed numerous companies that have signalled intentions to downsize amid growing uncertainty caused by government policies. In recent months, Harbour Energy, BP, Apache, Verlume, Well-Safe Solutions, Hunting, Altrad, Kaefer, Bilfinger, Wood Group, Chevron and Weatherford have all signalled their intention to downsize.
According to the BBC, the engineering services company EnerMech is set to cut 120 jobs at its Aberdeen operation, considering a total of 250 redundancies worldwide (about 5% of its workforce) following refinancing and the appointment of a new chief executive. A source said proposing the job losses had been a difficult decision, but the company was committed to a transparent process and is launching consultation with staff on the proposals.
Xodus Group became the latest oil and gas company to announce jobs at risk alongside EnerMech, according to Lumsden’s statement. It comes after energy firms EnerMech and Xodus Group announced in recent weeks plans to cut jobs in the north-east city.
Why has Lumsden invited Miliband to visit Aberdeen after 18 months?
He added: “I believe it has been more than 18 months since you last visited Aberdeen, which is why I extend a formal invitation to you to come to the city to see the devastation that is being caused for yourself”. As reported by the Evening Standard, Lumsden stated: “You will be able to speak directly with workers, companies and community representatives to see the realities and struggles of life in Aberdeen at the moment”.
The Tory candidate said: “The people of this great city deserve to be seen, heard and understood”. Lumsden has urged the minister to meet with oil and gas workers as the issue is put to the forefront of the by-election campaign. This follows previous claims that Miliband had been avoiding the UK’s oil and gas sector, which he denied during a visit to Aberdeen in October 2024, stating he was thrilled to be in the city first since his election in July.
What is the UK Government’s response to the “extinction” accusation?
A spokesman for the UK Government said: “Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills”. The government spokesman stated: “The lesson of yet another fossil fuel crisis is the UK needs to get off the fossil fuel rollercoaster and onto clean homegrown power we control”.
As reported by the Evening Standard, the government spokesman added: “This will protect jobs now and create the next generation of skilled jobs, including over 40,000 new clean energy roles in Scotland by 2030”. The proposed Energy Independence Bill, outlined in the King’s Speech, would place Ed Miliband’s current moratorium on new drilling into law and formally ban onshore fracking.
Energy Secretary Miliband defended the policy, saying rapidly accelerating renewable energy deployment was “the only way to bring down bills for good and take back control of our energy”. The government will make it illegal to grant new oil and gas licences in the North Sea, the King said at the state opening of Parliament.
What did Kemi Badenoch say about the by-election being a referendum on oil and gas?
Conservative Party leader Kemi Badenoch said: “Voters in Aberdeen South can turn this by-election into a referendum on the future of the North Sea oil and gas industry”. As reported by the Fife Conservatives, Badenoch stated: “It’s lunacy that the Labour Government, supported by the SNP, are blocking new drilling off the coast of Aberdeen”.
Badenoch added: “Next month’s by-election is the chance for people in Aberdeen South to say: ‘Enough is enough, this war on domestic oil and gas must stop'”. The Leader of the Opposition visited the constituency with Scottish Conservative leader Russell Findlay and candidate Douglas Lumsden, urging voters to see the election as a “referendum on the future of the North Sea oil and gas industry”.
As reported by The Independent, Badenoch accused the SNP of speaking “out of both sides of its mouth” on support for the fossil fuel industry during her visit to the city. She wants this to be a referendum on oil and gas, she said during a visit to Uniconn.
What did the GMB Union General Secretary say about government energy policy?
His comments come after the General Secretary of the GMB union accused the government of pursuing an ideological approach to energy policy that is “destroying” jobs. Speaking on Times Radio, Gary Smith compared the impact of Labour’s energy policies on industrial communities to the effects of Margaret Thatcher’s economic reforms.
He also dismissed claims that increasing North Sea oil and gas production would not benefit the economy as “utter nonsense”. Lumsden’s remarks follow the union leader’s criticism of the government’s energy approach.
What is Lumsden’s argument about Russian oil imports versus domestic extraction?
As reported by the Evening Standard, Lumsden questioned: “It’s therefore ludicrous why you would lift your ban on UK imports of diesel and jet fuel made from Russian oil, yet ban extraction from our own waters?”. He argued: “At a time when our energy security is in a state of national emergency from the conflict in the Middle East, I cannot fathom why you would want to prioritise foreign jobs and imports over UK jobs and production”.
Mr Lumsden argued that restricting domestic production would increase reliance on imported energy while threatening jobs and investment. The Conservative candidate highlighted the contradiction between allowing Russian oil imports while blocking domestic extraction.
What is GB Energy and where will it be headquartered?
During his visit to Aberdeen, known as the UK’s oil and gas hub, Miliband was asked if he had been neglecting the North Sea sector since July. He responded to BBC Scotland News, stating: “Absolutely not. I’m thrilled at being here discussing GB Energy, a new owned energy, will be headquartered in Aberdeen”.
Miliband said this is “a vote of confidence in the local workforce and businesses, demonstrating our commitment that Aberdeen will be recognized not just as the clean energy capital of the UK but of Europe as well”. However, it is now understood Energy Secretary Ed Miliband has narrowed it down to three options – Glasgow, Edinburgh or Aberdeen.
Great British Energy (GBE) is a publicly owned energy investment company in the United Kingdom, established by the Great British Energy Act 2025.
How does this news relate to corporate training courses at your institute?
For professionals working in the energy sector facing these industry transitions, understanding energy policy and regulation becomes critical for navigating changing market conditions. The business strategy courses at Imperial Training Institute help corporate teams develop adaptive strategies during industry transformations like the shift from fossil fuels to clean energy https://imperialtraining.org/training-category/.
Organisations employing workers in sectors affected by these policy changes should invest in leadership and management training to support teams through restructuring and job transitions. The risk management category provides essential skills for companies assessing regulatory risks and planning for different energy policy scenarios https://imperialtraining.org/training-category/.