North Sea oil industry appeals to Burnham for more drilling approvals
7 reported1 unconfirmed
The UK’s North Sea oil industry has made a last-ditch attempt to appeal to Andy Burnham’s reindustrialisation agenda just days before he is expected to become Britain’s next prime minister, according to a single-source report from The Guardian. Industry lobbyists wrote to more than 400 Labour MPs calling on the government’s new leaders to allow more oil and gas drilling in UK waters. The letter from industry group Offshore Energies UK (OEUK) was co-signed by more than 10 business groups linked to the oil and gas industry as well as the GMB trade union. It said the transition to a lower-carbon energy system would be “stronger and fairer” if built on an all-energy approach. Burnham has vowed to tackle deindustrialisation and safeguard sovereign manufacturing in critical sectors, but it is not clear what his premiership would mean for the North Sea. Under Ed Miliband, the energy secretary, the fate of two major North Sea projects – Rosebank and Jackdaw – has remained in limbo since Labour came to power with a promise to ban new exploration licences. Miliband was widely expected to overrule both projects but is now reportedly willing to consent to Jackdaw, according to the Observer.
What’s reported
The OEUK letter was co-signed by more than 10 business groups and the GMB trade union.
The letter called for more oil and gas drilling to support homegrown energy and UK manufacturing.
Burnham has promised to safeguard sovereign manufacturing in critical sectors including steel, defence, energy, food and farming.
Rosebank and Jackdaw were granted licences under the previous government, meaning no breach of Labour’s manifesto pledge if final consent is given.
Miliband was widely expected to overrule both projects but is reportedly willing to consent to Jackdaw, according to the Observer.
Jackdaw could begin producing gas for British homes as soon as this coming winter if approved; Rosebank would take longer and produce mostly oil for export.
A report by the CBI and Energy UK warned Great Britain’s electricity prices are about 45% above the G7 median.
Open questions
What a Burnham premiership would mean for the government’s approach to the North Sea.
Key figures
Andy Burnham, expected to become Britain’s next prime minister
Ed Miliband, energy secretary
Steve Elliott, chief executive of the Chemical Industries Association
Robert Palmer, deputy director of Uplift
Louise Hellem, chief economist at the CBI
Sources: The Guardian
