BP’s chief executive Meg O’Neill has called on Prime Minister Andy Burnham to prioritize energy resources from within the United Kingdom, even as the oil company prepares to divest its North Sea operations following more than six decades in the aging basin. O’Neill emphasized that domestic production generates employment, tax revenue, and other economic benefits for the nation.
The executive’s remarks came shortly after BP announced plans to streamline its business by exiting North Sea operations, which it described as lacking competitiveness within its overall portfolio. O’Neill noted the company has already received multiple unsolicited inquiries regarding its North Sea assets and expressed confidence they would remain profitable under different ownership. BP reported quarterly profits of $5.73bn in the three months ending in June, more than double the previous period, driven largely by elevated oil and natural gas prices resulting from Middle East market disruptions.
The Burnham administration faces upcoming decisions regarding two contested North Sea projects—the Jackdaw and Rosebank fields—amid intensifying public pressure over oil company profitability and escalating climate concerns. O’Neill told CNBC that the United Kingdom currently sources 75 percent of its energy from fossil fuels and should prioritize domestic oil and natural gas consumption before importing from external sources. She characterized the new prime minister as pragmatic and committed to working collaboratively with industry stakeholders.
Government officials are also confronting industry appeals to revise the North Sea tax framework, with the oil sector contending that existing UK tax rates on oil and gas extraction hasten economic decline in the sector. Reports indicate Burnham may face internal party opposition over his apparent backing for continued offshore drilling operations.
Large energy corporations globally reported exceptional earnings during the same period, with Shell doubling net profits to nearly $10bn and Saudi Aramco achieving a 44 percent increase in net income. These substantial windfall profits have drawn criticism from climate advocates and public figures, particularly given concurrent challenges including elevated household energy costs and intensifying heat-related extreme weather events.
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