UK energy choice: North Sea oil expansion or renewables push

The news

Andy Burnham could face pressure over whether to expand North Sea oil drilling or prioritise renewables. The debate comes amid energy security concerns tied to Iran, Russia’s war in Ukraine and UK fuel exposure. Labour MPs and climate campaigners are abandoning resistance to a controversial new North Sea gas field ahead of Burnham’s expected entry into Downing Street next month. MPs say they expect a Burnham government to approve Jackdaw, a major new gas development 150 miles east of Aberdeen.

What's at stake

The UK faces a decision on whether to expand North Sea oil drilling or accelerate renewables. Energy security concerns have risen due to Russia’s war in Ukraine and tensions involving Iran. Andy Burnham, seen as Keir Starmer’s likely successor, would confront this choice if he becomes prime minister. At the moment, instead of using those fields the UK is importing liquid gas, which is more expensive and less environmentally friendly. There are very big concerns from chambers in Aberdeen and the north-east that supply chains will leave and communities will face mass job losses.

Businesses do not feel confident to invest because business costs are so high, so they pull back from investment, and it becomes a vicious cycle. A spokesperson for Miliband’s Department for Energy Security and Net Zero said the priority is to deliver a fair, orderly and prosperous transition in the North Sea in line with climate and legal obligations.

The case for

New North Sea fields would strengthen UK energy security and cut import reliance. Instead of using domestic fields the UK is importing liquid gas, which is more expensive and less environmentally friendly. Because the transition has not happened as fast as oil and gas are declining, there is a worrying gap and the supply chain is leaving. There are very big concerns from chambers in Aberdeen and the north-east that it will go the way of the coalmines and millions of people will be out of work.

The case against

Expanding oil production would lock in emissions and slow the shift to renewables. The priority is to deliver a fair, orderly and prosperous transition in the North Sea in line with climate and legal obligations, which drives the clean energy future of energy security, lower bills, and good long-term jobs. Labour MPs and climate campaigners are abandoning resistance to a controversial new North Sea gas field but say they will carry on fighting over a second, even more contentious, oil field.

Why it matters now

Burnham is on a path to becoming Labour leader and UK prime minister within weeks. MPs say they expect a Burnham government to approve Jackdaw, a major new gas development 150 miles east of Aberdeen in north-east Scotland, as well as Rosebank, an oil and gas field 80 miles off the Shetland coast. The next political milestone is the expected leadership transition by mid-July.

Further reading

cnbc.com · The Guardian

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