Scottish Greens co-leader Patrick Harvie has said only the “hard right” now support new oil and gas extraction in the North Sea.
However, north-east business leaders called for an end to “knee-jerk reactions”.
Oil giant Shell had a 30% stake in the Cambo field, west of Shetland, but said on Thursday that the economic case for the project was “not strong enough”.
It follows a huge controversy over the development of the site, amid efforts to tackle the climate emergency.
First Minister Nicola Sturgeon recently confirmed her opposition to the project.
Activists from Friends of the Earth during a demonstration calling for an end to all new oil and gas projects in the North Sea.
Speaking on the BBC’s Good Morning Scotland radio programme, Mr Harvie welcomed the Shell decision, and hailed a dramatic change in Scottish politics on the use of fossil fuels.
He said: “The Greens have been very, very clear all through this debate, that new oil and gas extraction is not compatible with a serious response on climate.
“And it is remarkable how much the political landscape in Scotland has shifted.
“Even just a year ago I would challenge repeatedly all of the other parties to drop their support for maximum oil and gas extraction. It was almost impossible to get them to engage with that debate, and none of them would drop that policy.
“Now, almost all of them have dropped it. The first minister came out against Cambo recently, and has challenged the idea that ongoing maximum oil and gas extraction can be sustainable.
‘Only the hard right deny the reality’
“Labour and Lib Dems have changed their position, and the Tories are now isolated. It is only the hard right who continue to deny the reality that, not only environment groups, but the International Energy Agency, are very clearly saying, that new oil and gas extraction is simply not compatible with preserving our life support system.”
Mr Harvie added that it was “absurd” to suggest that the transition to renewable technologies would depend on more drilling.
Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, also appeared on Good Morning Scotland.
He said: “I think what we need today and going forward is a more reasoned debate than we are currently getting.
‘Vilified as the baddies’
Mr Borthwick added: “We need to stop some of the knee-jerk reactions that we are hearing.
“We need just transition to become a meaningful programme of action, and not just a glib phrase.
“We actually need investment, much of which of course is coming from those oil majors who are being vilified as the baddies.”
Liam Kerr, Scottish Conservative MSP for the north-east, said: “Cambo will be massively beneficial to our economy, securing our domestic supply of oil and gas while demand is still high.
“The industry supports 100,000 Scottish jobs and is crucial to the energy transition.
“It’s obviously disappointing Shell have pulled out from Cambo but it is a business decision for them to make.
“Recently, Nicola Sturgeon’s language about oil and gas has been more harmful than helpful.
“This will no doubt make it harder for energy companies to invest in oil and gas, and the skills and technology needed to reach carbon net zero.”