Key facts
- Britain's next leader, expected to be Labour's Andy Burnham, faces a decision on approving controversial North Sea gas and oil fields.
- The Jackdaw gas field and Rosebank oil field are key projects awaiting final government approval.
- Environmental campaigners are largely resigned to the approval of Jackdaw but will continue to oppose Rosebank.
- Donald Trump has taken an interest in UK North Sea drilling policy and has criticized Burnham's potential approach.
- The Labour manifesto pledged to honor existing licenses, including those for Rosebank and Jackdaw.
Britain's incoming leader, widely expected to be Labour's Andy Burnham, faces a significant decision regarding the approval of controversial North Sea gas and oil fields, with Donald Trump closely observing the outcome. Labour MPs and climate campaigners are reportedly preparing for the approval of the Jackdaw gas field, located 150 miles east of Aberdeen, though they intend to continue fighting the more contentious Rosebank oil field, situated 80 miles off the Shetland coast.
These projects have been delayed for years due to legal challenges, and a final decision from regulators is imminent, requiring the UK government's ultimate sign-off. Bill Esterson, a Labour MP and chair of the House of Commons Energy Security and Net Zero Committee, expressed his assumption that both fields will proceed. Some Labour MPs, speaking anonymously, acknowledge the need for a pragmatic approach that considers jobs, suggesting a focus on opposing Rosebank while accepting Jackdaw's development.
Donald Trump has shown a keen interest in North Sea oil and gas and has previously urged the UK to adopt a more liberal approach to drilling. He has also commented on Burnham, suggesting he is "extremely liberal" and might not open up the North Sea. The approval of either or both projects could be seen as an early gesture towards Trump.
The final decision rests with the current UK Energy Secretary, Ed Miliband, who previously described Rosebank as "climate vandalism" when the Labour party was in opposition. However, Miliband is seen as a potential chancellor in a Burnham government. The Unite union, representing oil and gas workers, has warned Burnham against promoting Miliband due to his policies on the North Sea. Under Miliband's current tenure, Labour has banned new exploration and increased a windfall tax on drillers.
Labour's manifesto has pledged to "honor existing licenses" for projects like Rosebank and Jackdaw, a point emphasized by incumbent Chancellor Rachel Reeves. Wes Streeting, a key Labour figure, has also called for their approval. Environmental groups like Uplift are now focusing their opposition primarily on the Rosebank oil field, viewing it as a test of the government's climate credibility.
Political pressure also comes from the right-wing Reform and Conservative parties, who support maximizing North Sea oil and gas exploitation. The Conservatives, having recently won a by-election in Aberdeen, focused their campaign on promoting North Sea production and protecting jobs. Conversely, Green Party leader Zack Polanski has warned that any "backsliding on climate action" would be a "moral and political failure" for Burnham.