The question is not whether we use these resources, but whether we produce them ourselves
As Andy Burnham prepares to assume the office of prime minister, Britain's North Sea oil industry has moved swiftly to align its interests with his reindustrialisation agenda, framing continued drilling not as a climate question but as a matter of industrial survival and national economic dignity. The fate of two projects — Rosebank and Jackdaw — now sits at the intersection of energy security, climate obligation, and the enduring anxiety over what kind of economy Britain wishes to become. In the choices made in the coming weeks, a new government will reveal whether it sees fossil fuel production as a bridge to be crossed or a foundation to be built upon.
- With Burnham days from Downing Street, the oil industry has launched a coordinated lobbying blitz — letters to 400+ Labour MPs, co-signed by trade unions and business groups — designed to make drilling feel like a jobs issue, not a climate one.
- The two projects at stake, Rosebank and Jackdaw, were licensed under the Conservatives, giving Labour a narrow political opening to approve them without formally breaking its ban on new exploration licences.
- Ed Miliband, who once called these projects 'climate vandalism,' is now reportedly willing to greenlight Jackdaw — a striking reversal driven, insiders suggest, by his ambitions for the chancellorship under Burnham.
- The industry's core argument carries real weight: UK electricity prices sit roughly 45 percent above the G7 median, and business leaders are calling energy cost reduction a 'day-one priority' for the incoming prime minister.
- Critics from the campaign group Uplift counter that new drilling entrenches gas dependency rather than relieving it, and urge the government to redirect investment toward wind manufacturing and genuine long-term industrial futures.
- Burnham has not yet shown his hand — but the decision will serve as an early and defining signal of whether his 'good growth' agenda bends toward fossil fuel continuity or accelerates the transition away from it.
With Andy Burnham days away from becoming prime minister, the North Sea oil industry has launched a carefully timed campaign to secure approval for two major drilling projects — Rosebank, an oil field, and Jackdaw, a gas development. Offshore Energies UK sent letters to more than 400 Labour MPs, co-signed by business associations and the GMB union, framing the case not around climate but around Burnham's own stated mission: rebuilding Britain's industrial base and protecting skilled workers.
Both projects were licensed under the previous Conservative government, which means Labour could approve them without technically violating its manifesto pledge against new exploration licences. Energy Secretary Ed Miliband, who once denounced such projects as 'climate vandalism,' is now reportedly willing to consent to Jackdaw — a shift attributed to his desire to build credibility as a potential successor to Rachel Reeves as chancellor. Jackdaw could begin supplying gas to British homes by winter if approved; Rosebank would take longer and would primarily produce oil for export.
The industry's argument draws on a genuine economic anxiety. A joint CBI and Energy UK report found British electricity prices running roughly 45 percent above the G7 median — a burden that suppresses investment and competitiveness across the economy. Industry figures insist the real question is not whether Britain uses oil and gas, but whether it produces them at home or grows dependent on imports.
Opponents are unconvinced. Uplift's Robert Palmer argued that without a rapid shift to renewables and household energy support, new drilling only deepens gas dependency rather than relieving it. He urged the government to invest instead in sectors like wind manufacturing, which could offer stable, long-term employment.
Burnham has not yet revealed his position. His political identity rests on tackling deindustrialisation and delivering what he calls 'good growth in every postcode' — but the tension between that agenda and climate commitments is now impossible to avoid. What the new government decides in the coming weeks will be read as an early declaration of which kind of economy it is truly trying to build.
With Andy Burnham days away from becoming prime minister, the North Sea oil industry has launched a coordinated push to secure approval for two major drilling projects by appealing directly to his stated mission: rebuilding Britain's industrial base. Offshore Energies UK, the industry's main lobbying group, sent letters to more than 400 Labour MPs this week, co-signed by over a dozen business associations and the GMB trade union. The message was carefully calibrated to Burnham's political priorities. The industry framed continued drilling not as a climate issue but as an economic one—a way to demonstrate commitment to manufacturing, industrial capability, and the skilled workforce that has sustained the nation.
The two projects at stake are Rosebank, an oil field, and Jackdaw, a gas development. Both were licensed under the previous Conservative government, which means Labour could approve them without technically breaking its manifesto promise to ban new exploration licences. Energy Secretary Ed Miliband has long opposed these projects, once calling them "climate vandalism." But recent reporting suggests he may now be willing to consent to Jackdaw, reportedly to build credibility as a potential successor to Rachel Reeves as chancellor under Burnham. Jackdaw could begin producing gas for British homes by winter if approved. Rosebank would take longer to come online and would primarily produce oil for export to European refineries.
The industry's argument rests on a straightforward premise: Britain will need oil and gas for decades regardless. The real question, OEUK contended, is whether the country produces these resources domestically or becomes increasingly dependent on imports. Steve Elliott, chief executive of the Chemical Industries Association, framed the case as one of industrial competitiveness and job protection, not climate obstruction. The underlying concern is real and pressing. A joint report from the CBI and Energy UK found that British electricity prices are roughly 45 percent above the median for G7 nations, a competitive disadvantage that weighs on productivity across the entire economy. Louise Hellem, the CBI's chief economist, called reducing business energy costs a "day-one priority" for the incoming prime minister, noting that years of policy costs loaded onto electricity bills have left UK firms struggling to invest and compete globally.
But the industry's pitch faces significant opposition. Robert Palmer, deputy director of Uplift, a campaign group against North Sea drilling, rejected the energy security argument entirely. New drilling will do little to improve energy independence, he argued, because without a rapid shift to renewables and support for households to reduce fossil fuel dependence, Britain will only become more reliant on imported gas. He called on the government to ignore what he characterized as special pleading from companies that have grown wealthy while households faced soaring energy bills and workers experienced declining job security. Instead, he urged investment in industries with genuine long-term potential, like wind manufacturing, which could provide stable employment for generations.
Burnham's position remains unclear. He has built his political identity around tackling deindustrialisation and creating what he calls "good growth in every postcode," with explicit promises to safeguard sovereign manufacturing in critical sectors including energy. Yet the tension between that agenda and climate commitments is now unavoidable. The industry is betting that Burnham's focus on industrial revival will tip the scales toward approval. What happens in the coming weeks will signal whether the new government sees North Sea drilling as part of its reindustrialisation strategy or as a relic of an economy it is trying to transform.
Notable Quotes
Backing North Sea oil and gas alongside renewables is about strengthening industrial competitiveness, protecting jobs and reducing reliance on imports— Steve Elliott, Chief Executive, Chemical Industries Association
New drilling will do little for energy security without a rapid shift to renewables and help for households to reduce fossil fuel reliance— Robert Palmer, Deputy Director, Uplift
The Hearth Conversation Another angle on the story
Why is the oil industry making this pitch now, to Burnham specifically?
Because Burnham's entire political brand is about rebuilding British industry and manufacturing. The industry is saying: approve our projects and you prove you're serious about that. It's a direct appeal to his stated values.
But Miliband called these projects "climate vandalism." How does that square with approving them?
It doesn't, unless you accept the argument that energy security and industrial competitiveness override climate concerns in the short term. Miliband may be willing to make that trade-off to position himself as a pragmatist, not an ideologue.
Is the energy security argument actually sound?
It depends on your timeframe. Yes, Britain will need gas in the near term. But the counterargument is that investing in renewables and helping people reduce fossil fuel use would do more for long-term security than drilling more oil that mostly gets exported.
What's the real pressure on Burnham here?
Electricity costs. British businesses pay 45 percent more than the G7 average. That's a genuine drag on competitiveness. The industry is saying: we can help with that. Whether drilling actually does is the question.
So this is really about whether Burnham sees oil and gas as part of his industrial strategy or as something to move past?
Exactly. And the industry is betting that his focus on manufacturing and jobs will make him see it as part of the solution, not the problem.