Andy Burnham is poised to reveal a strategy for new oil and gas drilling in the North Sea following his ascension to the role of Prime Minister. This development marks a significant shift, given that the Labour Party’s 2024 manifesto pledged to refrain from issuing new licences while honouring existing agreements.
A Shift in Policy Direction
Two major oil and gas fields, Rosebank and Jackdaw, lie at the centre of this contentious issue. Approved by regulators during the previous Conservative administration in 2022 and 2023, these projects faced a setback in 2025 following a legal challenge that overturned their approvals. As Burnham prepares to unveil his policy measures, insiders suggest that while new licences are not on the agenda, he may advocate for expedited production from these existing sites, thus navigating around the manifesto’s restrictions.
Sources close to Burnham indicated that no final decisions regarding new drilling initiatives have been made, implying that any announcements regarding these fields will be tentative. The incoming Prime Minister is expected to use his inaugural speech to hint at action without formally endorsing the production at Rosebank and Jackdaw—decisions that will ultimately rest with the yet-to-be-named energy secretary.
Cost of Living and Public Services
Burnham’s announcement is anticipated to encompass a broader array of policy initiatives, including plans to bring water and energy companies under public ownership and launch a new programme for council house construction. These measures aim to provide relief amidst the ongoing cost of living crisis, with Burnham promising a proactive approach that prioritises tangible improvements in citizens’ lives.
While many in Westminster had expected immediate clarity on oil and gas policies during his first address, it appears that specifics will be outlined later. Nonetheless, the discussion surrounding North Sea drilling has been a longstanding debate, with critics within the Labour Party expressing frustration over the pace of progress on oil and gas exploration.
Internal Party Divisions
The issue has not only split opinion within the party but has also drawn scrutiny from the Conservative opposition and external figures, including US President Donald Trump, who has publicly critiqued the previous government’s energy policy and called for increased exploration in the North Sea.
Former Labour leader Sir Keir Starmer faced significant backlash for his stance against new drilling licences, with critics arguing that the move did not translate into lower energy costs for consumers. The current climate crisis has intensified calls for a transition to renewable energy sources, which many see as essential for future energy security and climate stability.
Labour backbencher Rachael Maskell has voiced her concerns about increased drilling, especially amidst the backdrop of extreme weather events, underscoring the urgency of adhering to climate science. In contrast, some party members argue for a balanced approach that acknowledges the importance of job protection in the energy sector while pushing for renewable energy expansion.
Industry Pressure and Future Prospects
The oil and gas sector has been vocal in its support for Burnham, with industry representatives and trade unions urging the new Prime Minister to back North Sea exploration. A letter sent to Burnham highlighted the importance of this sector for national commitment to production and job creation, suggesting that failure to do so would be a disservice to communities reliant on these industries.
However, environmental groups, including the Green Party, have condemned any potential new drilling, arguing that it contradicts commitments to combat climate change. They assert that the scientific consensus is clear: expanding fossil fuel projects undermines efforts to limit global warming and protect the environment.
Why it Matters
As Burnham prepares to implement his policies, the decisions surrounding North Sea drilling will have significant implications for the UK’s energy strategy, economic stability, and environmental commitments. The balance between energy independence, job protection, and climate action will be a defining challenge for his premiership. The discussions in the coming weeks will be pivotal, shaping not only Labour’s future direction but also the public’s response to the urgent climate crisis.