The North Sea oil industry is making a final push to persuade Labour leader Andy Burnham to approve new drilling in UK waters, just days before he is expected to become prime minister. Industry lobbyists have sent letters to over 400 Labour MPs, urging support for homegrown energy and a commitment to manufacturing and skilled jobs.
Offshore Energies UK (OEUK), backed by more than 10 business groups and the GMB union, argues that a lower-carbon transition must be built on an all-energy approach that leverages existing industrial strengths. The letter emphasizes the need to safeguard sovereign manufacturing in critical sectors like energy, steel, and defense.
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Key Demands from the North Sea Oil Sector
The oil and gas industry wants the Labour government to approve new exploration licenses, including the stalled Rosebank and Jackdaw projects. These were granted under the previous government, so approving them would not break Labour’s manifesto pledge to ban new licenses.
Comparison of Rosebank and Jackdaw Projects
| Project | Status | Potential Impact |
|---|---|---|
| Rosebank | Awaiting final consent | Major oil field, could boost UK energy security |
| Jackdaw | Awaiting final consent | Gas development, supports industrial jobs |
Energy Secretary Ed Miliband has kept both projects in limbo since Labour took power. The industry warns that delaying these projects risks deindustrialization and job losses across the supply chain.
Why This Matters for UK Energy Policy
Burnham has promised to tackle deindustrialization and create good growth in every postcode. However, his stance on North Sea drilling remains unclear. The outcome could set a precedent for future energy projects and the UK’s path to net zero.
- Supports homegrown energy and reduces reliance on imports
- Preserves skilled workforce in oil, gas, and manufacturing
- Balances climate goals with industrial capability
FAQ
What is the North Sea oil industry asking for?
The industry is urging Labour to approve new drilling projects, including Rosebank and Jackdaw, to support energy security and manufacturing jobs.
Will Labour break its manifesto pledge by approving these projects?
No, because Rosebank and Jackdaw were licensed under the previous government, so final consent would not violate the ban on new exploration licenses.
How does this affect UK energy policy?
The decision will signal Labour’s approach to balancing climate targets with industrial growth and energy independence.
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