UK must increase North Sea drilling to boost economy, says US ambassador

The US ambassador to the UK has said Britain should carry out "more drilling and more production" in the North Sea.

In his first broadcast interview in the job, Warren Stephens urged the UK to make the most of its own oil and gas reserves to cut energy costs and boost the economy.

"Electricity costs are four times ours in the UK, versus the US," he told Mornings with Ridge and Frost.

"I want the UK economy to be as strong as it possibly can be, so the UK can be the best ally to the US that it possibly can be.

"Having a growing economy is essential to that - and the electricity costs make it very difficult."

Mr Stephens told Wilfred Frost he hoped Britain would "examine the policies in the North Sea and frankly, make some changes to it that allows for more drilling and more production".

"You're using oil and gas, but you're importing it. Why not use your own?" he asked.

The ambassador said he had held meetings with Sir Keir Starmer on the energy issue while US President Donald Trump was in the room, and that the prime minister was "absolutely" listening to the US view.

"I think there are members of the government that are listening," Mr Stephens told Sky News. "There is a little bit of movement to make changes on the policy and I'll hope that will continue."

Energy Secretary Ed Miliband has said the UK should be prioritising net zero by 2030 to limit climate change, rather than issuing new oil and gas drilling licences.

However, the ambassador said it would take "all energy for all countries to compete" in the future, given the huge power demands of data centres and AI.

"I don't think Ed Miliband is necessarily wrong," said Mr Stephens. "But I think it's an incorrect policy to ignore your fossil fuel reserves, both in the North Sea and onshore."

The ambassador hosted Mr Trump on the first night of his second UK state visit in September - a trip that was seen as a success by both sides.

Mr Stephens said Mr Trump and Sir Keir had a "great relationship" and pointed to the historic ties between Britain and the US as a major factor in June's trade deal and the favourable tariff rate on the UK.

"The president really loves this country," the ambassador told Sky News.

"I don't think it's coincidental that the tariff rates on the UK are generally a third, or at worst half, of what a lot of other countries are facing.

"I think the prime minister and his team did a great job of positioning the United Kingdom to be the first trade deal, but also the best one that's been struck."

Mr Stephens - who began his job in London in May - also touched on the Ukraine war and said Mr Trump's patience with Russia was "wearing thin".

The Alaska summit between Mr Trump and Vladimir Putin failed to produce a breakthrough, and the US leader has admitted the Russian president may be "playing" him so he can continue the fighting.

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The ambassador told Sky News he had always favoured a tough stance on Russia and was "delighted" when Mr Trump sanctioned Russia's two biggest oil firms a few weeks ago.

However, he emphasised the president's call that other countries must stop buying Russian energy to really tighten the screw.

"The president, has been, I would say, careful in ramping up pressure on Russia. But I think his patience is wearing out," said Mr Stephens.

"One of the problems is a lot of European countries still depend on Russian gas," he added.

"We're mindful of that. We understand that, but until we can really cut off their ability to sell oil and gas around the world, they're going to have money and Putin seems intent on continuing the war."

The ambassador also struck a cautious but hopeful tone on future US and UK relations with China.

It comes after Mr Trump said his meeting this week with President Xi Jinping was a "12/10", raising hopes the trade war between the superpowers could be simmering down.

China's huge economy is too big to ignore - but it remains a major spy threat; the head of MI5 warned last month of an increase in "state threat activity" from Beijing (as well as Russia and Iran).

Mr Stephens praised the country's economy and said it would be "terrific" if China could one day be considered a partner.

But he warned "impatient" China is ruthlessly focused on itself only, and would like to see the US and the West weakened.

"There's certainly things we want to be able to do with China," added the ambassador.

"And I know the UK wants to do things with China. The United States does, too - and we should. But I think we always need to keep in the back of our mind that China does not have our interests at heart."

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