Key facts
- UK Prime Minister Andy Burnham has stated he will adopt a "pragmatic approach" to North Sea oil and gas extraction.
- Industry groups are urging the new government to approve controversial North Sea projects like the Jackdaw gas field and Rosebank oil project.
- Labour's 2024 manifesto ruled out new licences for North Sea exploration, but existing ones would not be revoked.
- Environmentalists and climate scientists oppose new oil and gas development, advocating for investment in green transitions.
- The UK Energy Research Centre described claims of North Sea drilling providing energy resilience and affordability as a "delusion".
Prime Minister Andy Burnham has indicated a pragmatic approach to North Sea oil and gas extraction, a stance that has intensified debate over the UK's energy future. While industry groups like Offshore Energies UK (OEUK) and the Aberdeen & Grampian Chamber of Commerce are urging the government to approve controversial projects such as the Jackdaw gas field and Rosebank oil field, environmentalists and climate scientists are strongly opposing new fossil fuel development. These projects face legal challenges, with previous consents overturned by courts.
Burnham's government, which took power in 2024, has introduced policies supporting renewable energy and grid infrastructure, alongside restrictions on new oil and gas drilling. Labour's 2024 manifesto ruled out new exploration licences but stated existing ones would not be revoked. Insiders suggest a compromise may be reached, potentially allowing the Jackdaw gas project to proceed, as the UK remains heavily dependent on gas as a transition fuel.
However, environmental concerns are mounting, with recent extreme weather events linked to climate change. UN Secretary-General António Guterres has warned against new fossil fuel projects, and the Green Party is gaining popularity with its staunch opposition to new licences. Labour MP Rachael Maskell has also urged ministers to "keep carbon in the ground." BP, an oil major, advocates for continued expansion, citing the UK's reliance on fossil fuels. Conversely, the UK Energy Research Centre has called claims of North Sea drilling providing energy resilience and affordability a "delusion," noting that the Jackdaw project is expected to create only 27 direct jobs and may not significantly impact consumer prices or long-term energy security.