BP’s chief executive Meg O’Neill has called on UK Prime Minister Andy Burnham to prioritize the nation’s oil and gas resources, arguing that domestic energy production supports job creation and tax revenue. This message comes as the 117-year-old petroleum company announced plans to exit the North Sea following six decades of operations in the aging basin.
O’Neill stated that North Sea investments are no longer competitive within BP’s broader portfolio. However, she expressed confidence that the company’s North Sea assets would attract buyers and remain profitable under alternative ownership. BP has already fielded multiple unsolicited offers for its North Sea fields. The company’s quarterly profit more than doubled to $5.73 billion in the three months ending in June, driven by rising oil and gas prices stemming from Middle East regional tensions disrupting energy supplies from the Gulf.
The UK government faces decisions regarding two contested North Sea projects—Jackdaw and Rosebank—amid mounting public concern over fossil fuel profits and climate impacts. O’Neill emphasized that the UK currently sources 75 percent of its energy from fossil fuels and should prioritize consuming domestically produced oil and gas rather than importing from other nations. She characterized the new administration as pragmatic and business-friendly.
The oil sector has persistently argued that the UK’s elevated taxation on oil and gas operations accelerates the industry’s decline, and industry representatives are calling for tax regime reforms. Burnham’s apparent support for continued North Sea drilling has already prompted warnings of potential government opposition.
The surge in oil company profits has drawn criticism from climate advocates and political figures. Shell and Saudi Aramco posted record or near-record earnings, while fossil fuel-driven price increases continue affecting households and businesses. Environmental organizations have highlighted the contrast between corporate profits and widespread public hardship from energy costs and climate-related disasters including severe heatwaves, wildfires, and droughts across Europe.
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