Industry representatives from the North Sea oil and gas sector have launched a coordinated appeal to Labour MPs in anticipation of Andy Burnham becoming prime minister, requesting government approval for additional drilling in UK waters. The letter, issued by Offshore Energies UK and co-signed by more than 10 business organizations and the GMB trade union, frames expanded oil and gas extraction as compatible with broader economic reindustrialization goals.
The industry argues that continued fossil fuel production aligns with Burnham’s stated commitment to rebuilding British manufacturing capacity and supporting skilled workers across critical sectors. The appeal emphasizes that the energy transition can proceed more effectively through an all-energy approach that builds on existing industrial strengths rather than abandoning them. Proponents contend that Britain will require oil and gas resources for decades and should maximize domestic production rather than increase reliance on imports.
The appeal arrives as the government remains undecided on two major North Sea projects: Rosebank and Jackdaw. While Labour campaigned on banning new exploration licenses, both projects received licenses under the previous administration, creating potential room for approval without contradicting campaign pledges. Energy Secretary Ed Miliband previously characterized these projects as problematic, though recent reports suggest he may consent to the Jackdaw gas project. Jackdaw could begin production within the coming winter, while Rosebank would require a longer timeline and would primarily supply oil for European refineries.
Opposition voices dispute the industry’s arguments. Environmental campaigners contend that new drilling offers minimal energy security benefits and that renewable energy development, coupled with efforts to reduce household fossil fuel dependence, represents a more effective path forward. Critics also argue that oil and gas companies have enriched themselves while households experienced elevated energy costs and workers faced declining conditions.
Burnham also confronts separate pressure regarding electricity costs, which exceed G7 averages by approximately 45 percent. Business organizations warn that elevated energy expenses undermine industrial competitiveness and represent a significant economic drag, urging the incoming administration to prioritize cost reduction as an immediate objective.
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