Britain's largest undeveloped oil field, Rosebank, could begin producing millions of barrels a day by the autumn if Energy Secretary Ed Miliband approves the project. Located off the Shetland Islands, the site is forecast to generate up to 500 million barrels of oil and gas, with its owner saying it is entering the final stages before potential first production.

Gas from the field would be used domestically and supply around 1 per cent of national demand, while the oil would be exported to northern Europe due to limited refining capacity at home. The proposal comes amid renewed concerns about energy security following conflict in the Middle East and rising global oil prices.

Manufacturing leaders have urged the government to quickly approve Rosebank and another undeveloped North Sea gas field, arguing that high industrial energy costs are hindering growth. However, the government has increased taxes on oil and gas producers and limited new exploration licences, with Miliband stating that new licences would not reduce household energy bills.