Burnham's North Sea oil reversal tests Labour's green pledges

The news

Andy Burnham will announce plans for new oil and gas drilling in the North Sea when he becomes prime minister on Monday, the BBC has been told. While details of the new oil and gas plans are not clear, the North Sea row has become increasingly divisive as Labour figures debate the party's future direction over energy policy. Some Labour MPs have urged the government to take a more liberal approach, warning that the transition away from oil and gas must protect jobs and the cost of energy bills. Earlier this week, before the leadership nominations deadline, Burnham was issued with a letter from the oil and gas industry and trade unions calling on him - and all other Labour MPs - to back North Sea oil and gas. A coalition of UK energy producers, manufacturers, trade unions and industrial organisations has urged Labour MPs to support continued North Sea oil and gas development.

What's at stake

The UK North Sea oil and gas sector supports skilled employment and manufacturing across the country. A letter delivered on Tuesday to all 403 Labour members of Parliament warned that policy decisions made by the new government will determine whether the UK continues to develop its domestic resources or becomes increasingly dependent on imported oil and gas. The letter, signed by executives and representatives from the offshore energy, chemicals, engineering, shipping and construction sectors, was presented at Westminster alongside an industry summit focused on the role of domestic energy production in supporting UK manufacturing and skilled employment. Offshore Energies UK chief executive David Whitehouse said energy security, economic resilience and reindustrialisation depend on maintaining domestic energy production as well as greater investment in renewable and low-carbon technologies. Two fields, Rosebank and Jackdaw, approved under the Conservatives, were overturned in 2025 after legal challenge, highlighting the tension between existing manifesto pledges and current industry pressure.

The case for

New licences protect jobs, keep energy bills low and support manufacturing. Domestic production remains essential to the country's energy security, industrial competitiveness and long-term economic growth. The UK industry coalition argues that without continued development the country risks greater reliance on imports at a time when manufacturing needs stable and affordable energy supplies. Investment in the North Sea alongside renewables would sustain skilled employment across offshore energy, chemicals, engineering, shipping and construction sectors while bolstering economic resilience. The sector's role as a force for good in reindustrialisation makes continued licensing a practical step to maintain competitiveness.

The case against

New licences increase climate emissions and delay the shift to renewables. Approving further North Sea development would lock in higher carbon output for years to come at a point when the UK has already overturned recent approvals such as Rosebank and Jackdaw following legal challenges in 2025. Labour's 2024 manifesto explicitly pledged not to issue new licences, reflecting a policy aimed at accelerating the move away from fossil fuels. Continuing to extract domestic oil and gas risks undermining investment in low-carbon technologies and prolongs dependence on fuels that contribute directly to global emissions. The focus should instead remain on scaling renewables to meet both climate goals and future energy needs without extending the lifespan of high-emission production.

Why it matters now

Burnham's announcement on Monday will set the direction for energy policy under his leadership after he takes over from Sir Keir Starmer. A decision to issue new licences would reverse the 2024 manifesto stance and the 2025 overturning of Rosebank and Jackdaw, signalling a more pragmatic approach to jobs and bills. If the plans proceed the North Sea could see renewed activity before the SPE Offshore Europe 2027 conference in Aberdeen. A decision to hold the line would reinforce the transition to renewables but could intensify pressure from industry and unions over economic impacts in the coming years.

Further reading

BBC News · worldoil.com

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