North Sea oil industry urges Burnham to approve new drilling in UK waters

by | Aug 9, 2026 | Energy

North Sea oil industry urges Burnham to approve new drilling in UK waters

The UK’s North Sea oil and gas sector has launched a campaign targeting Labour MPs, appealing to Andy Burnham’s reindustrialization agenda ahead of his expected elevation to prime minister. The industry coalition, led by Offshore Energies UK and supported by over 10 business groups and the GMB trade union, sent letters to more than 400 Labour members of Parliament requesting approval for additional drilling in British waters.

The industry’s pitch frames new oil and gas extraction as complementary to the government’s clean energy goals. Proponents argue that an “all-energy approach” would build on existing industrial strengths rather than abandoning them, and contend that Britain will require fossil fuels for decades regardless. The Chemical Industries Association emphasized that backing North Sea production alongside renewables strengthens industrial competitiveness and reduces import dependency in an uncertain global environment.

The timing of the appeal reflects uncertainty surrounding two major projects: Rosebank and Jackdaw. Both received licenses under the previous government, technically allowing Labour to approve them without breaching its manifesto pledge against new exploration licenses. Energy Secretary Ed Miliband previously characterized these developments as “climate vandalism,” but recent reports suggest he may consent to Jackdaw to establish credibility as a potential successor chancellor. Jackdaw could produce gas within the coming winter if approved, while Rosebank would require longer development and yield primarily oil for European export.

Opposition groups contest the industry’s framing. Uplift, a campaign organization, warned that new drilling provides minimal energy security benefit and argued resources should instead fund renewable manufacturing and related employment. Environmental advocates question whether fossil fuel expansion meaningfully addresses energy costs or import reliance.

Burnham faces competing pressures regarding energy policy. A joint report from the CBI and Energy UK flagged that British electricity prices exceed G7 median levels by approximately 45 percent, creating significant competitive disadvantages for domestic industry. Business leaders have characterized reducing energy costs as a critical priority for the incoming administration to support investment, electrification, and global competitiveness.

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