The UK’s North Sea oil industry has launched an appeal to incoming Prime Minister Andy Burnham, seeking government approval for expanded drilling in UK waters. The appeal was coordinated through Offshore Energies UK (OEUK) and backed by more than 10 related business groups and the GMB trade union, with letters sent to over 400 Labour MPs.
The industry’s pitch centers on alignment with Burnham’s stated reindustrialization agenda. The letter argues that an “all-energy approach” combining renewables with continued oil and gas production would better serve Britain’s economic interests by building on existing industrial capabilities rather than abandoning them. The industry contends that the UK will require oil and gas for decades regardless, making the key question whether Britain produces these resources domestically or becomes increasingly reliant on imports.
The appeal comes as the fate of two major North Sea projects—Rosebank and Jackdaw—remains unresolved. While Energy Secretary Ed Miliband has previously criticized these developments, recent reports suggest he may now approve Jackdaw gas production to begin later this year. Rosebank would require longer to reach production and would primarily yield oil for European export markets.
The industry’s case emphasizes job protection and energy security, with business group representatives arguing that supporting North Sea operations alongside renewable development strengthens industrial competitiveness. However, environmental campaigners counter that such drilling offers limited energy security benefits and that investment should instead focus on renewable manufacturing and household energy efficiency improvements.
Meanwhile, Burnham faces separate pressure regarding electricity costs, which currently exceed G7 median prices by approximately 45%. Business organizations have urged rapid cost reduction as a priority for the new administration, citing the drag on productivity and competitiveness across the broader economy.
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