Ed Miliband has risked a Labour civil war by refusing to rule out development of the Rosebank oil field.
The Energy Secretary hinted it might not be in breach of Labour's manifesto pledge not to grant new oil and gas licences because it is about "consent, it's not about a licence".
But the Cabinet Minister stressed he will only take a decision after the "proper process" is completed.
Mr Miliband, who has previously described drilling at Rosebank as "climate vandalism", could open the door to more drilling in North Sea.
It comes amid mounting pressure from the Tories and Reform.
The Rosebank field, which is located some 80 miles west of Shetland, is the UK's largest untapped oil field and is estimated to contain up to 300 million barrels of oil.
Development there was approved by the Conservative government in 2023 but this was challenged in the courts in the wake of a Supreme Court ruling which stated that the emissions created from burning fossil fuels should be considered when granting permission for new drilling sites.
Net zero targets "are not helping", shadow energy secretary Claire Coutinho has said.
Conservative leader Kemi Badenoch has pledged to scrap the Climate Change Act, which created the committee and the framework for cutting emissions to net zero by 2050 and adapting the UK to climate impacts.
Speaking to Sky News' Sunday Morning With Trevor Phillips, Ms Coutinho linked climate targets to the cost-of-living crisis.
"We've said we would repeal the climate change target, and actually we think the net zero targets are a problem," she said.
"One, it's making the cost of electricity incredibly expensive. And two, we're seeing jobs move from this country to countries abroad that's actually worsening climate emissions.
"Every time a business leaves here for a country powered by coal, you're worsening climate emissions, and so we don't think it's doing what it says on the tin, but net-zero targets at this point are not helping climate change the economy or cost of living for households."
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