Jim Ratcliffe's chemical group INEOS has called on the UK government to reopen the North Sea for drilling. The incoming Labour Prime Minister Andy Burnham is expected to announce plans related to North Sea oil and gas exploration, though details remain unclear and may not directly contradict the party's manifesto pledge against new licenses.
The UK's approach to North Sea drilling has significant implications for energy security, climate policy, and the economy, impacting consumer energy costs, jobs in the sector, and the country's progress towards net-zero emissions.
INEOS, the chemical group owned by billionaire Jim Ratcliffe, has called on the UK government to reopen the North Sea for drilling. The plea comes as incoming Prime Minister Andy Burnham is expected to announce plans for new oil and gas drilling in the region.
Burnham's announcement will be part of a series of policy measures, including plans to bring water and energy companies under public control and a new council house-building program. These initiatives aim to provide relief on the cost of living and deliver tangible change.
The Labour Party's 2024 manifesto stated a commitment to honoring existing oil and gas licenses but not issuing new ones. The debate centers on two fields in Scotland, Rosebank and Jackdaw, which had their approvals overturned in 2025 after a legal challenge, having been initially approved in 2022 and 2023 under the Conservative government.
While details of Burnham's oil and gas plans are not yet clear, sources suggest he may pitch them as a significant shift, though overt support for entirely new licenses is not anticipated. The decision on Rosebank and Jackdaw is complicated by ongoing legal processes, meaning explicit approval might not be announced by Burnham himself but could fall to a new energy secretary. However, he might pledge to expedite existing drilling plans, as many previously approved licenses remain undeveloped.
Former Labour leader Sir Keir Starmer had previously argued that new licenses do not lead to cheaper bills and prioritized a transition to renewable energy. The Conservative Party and Reform UK have pressured the government to approve more drilling, citing the need to utilize domestic resources amid rising energy prices due to the Iran war. US President Donald Trump has also repeatedly urged the opening of North Sea oil.
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