North Sea Oil Industry Urges Burnham to Approve New Drilling in UK Waters

The UK's North Sea oil industry is engaged in an intensive lobbying effort, urging Andy Burnham, who is expected to become the next Prime Minister, to approve new oil and gas drilling projects in UK waters. Just days before his anticipated premiership, industry group Offshore Energies UK (OEUK), alongside the GMB trade union and over 10 business groups, dispatched a letter to more than 400 Labour Members of Parliament. The letter emphasized the need to support homegrown energy, strengthen UK manufacturing, enhance industrial capability, and protect the skilled workforce that has powered the nation for generations, aligning with Burnham's reindustrialisation agenda.

The industry is particularly pushing for immediate approval of the Rosebank and Jackdaw fields. Rosebank, located approximately 130km west of Shetland, stands as the UK's largest undeveloped oil and gas field, while Jackdaw is a significant gas field off the coast of Aberdeen. Both projects had previously received approval under the former Conservative government, but these decisions were overturned in 2025 by the Court of Session following legal challenges by environmental groups, Greenpeace and Uplift, which cited inadequate assessment of downstream emissions. Revised applications are currently under review by the North Sea Transition Authority (NSTA), with reports indicating that Energy Secretary Ed Miliband is inclined to approve the Jackdaw project but remains hesitant about Rosebank.

These developments could significantly impact the UK's energy security and investment in the sector. The industry argues that increasing domestic production would create jobs, generate tax revenue, and bolster the country's energy independence against volatility in global markets. However, the Labour Party's 2024 general election manifesto pledged against issuing new exploration licenses, asserting that such projects would neither reduce energy bills nor ensure energy security, but rather exacerbate the climate crisis. Environmental groups further contend that most oil and gas extracted from the North Sea is exported, and new drilling contradicts climate targets.

This appeal closely ties into Andy Burnham's broader 'reindustrialisation' agenda, aimed at addressing the country's deindustrialisation and safeguarding sovereign manufacturing capability in critical sectors like steel, defense, energy, and food. While Burnham has stated he has an 'open mind' on North Sea oil and gas and holds 'no fixed position,' his party's official policy opposes new licenses. Geopolitical tensions, including the conflict in Iran and other energy shocks, have amplified pressure for increased domestic production. This situation presents a delicate balancing act for a potential Burnham government, navigating between climate commitments and the pragmatic demands of energy security and economic stability.

Internal divisions within the Labour Party are also evident on this issue. Some Labour MPs, such as Josh Simons and Torcuil Crichton, advocate for the approval of projects like Rosebank and Jackdaw, citing jobs, tax revenue, and energy security. Conversely, others, including Uma Kumaran and Chris Murray, oppose these projects due to climate crisis concerns and the limited impact they may have on energy security or household bills. Expectations are high for how Andy Burnham, as the presumptive Prime Minister, will navigate these pivotal energy decisions. His choices will not only shape the UK's energy future but also profoundly influence its global climate leadership and economic resilience.