Conservative leader Kemi Badenoch has launched a strong criticism of Prime Minister-in-waiting Andy Burnham regarding the future of oil and gas drilling in the North Sea. Burnham is expected to announce on Monday his approval of the Scottish oil fields, Jackdaw and Rosebank.
Badenoch stated that Labour has "wasted two years, lost thousands of jobs and missed out on billions of pounds" due to delays in the sector's investment. She further called for an end to the ban on all future oil and gas developments, suggesting Burnham's current plans do not go far enough.
The Labour leader's expected decision faces scrutiny over a potential conflict with the party's 2024 manifesto pledge, which stated a commitment not to issue new licenses but to honor existing ones. The Rosebank and Jackdaw developments were initially approved by the previous Conservative government but faced delays due to legal challenges that necessitated fresh environmental assessments. A new consultation this month requires the Labour government to make a final decision on granting approval.
"Just two pieces of paper stand in the way of billions of pounds of tax revenues and enough gas to meet 10 percent of our needs," Badenoch said. She added, "Because of Labour and the SNP we have wasted two years, lost thousands of jobs and missed out on billions of pounds in investment in the North Sea."
Andrew Bowie, the Conservative MP for West Aberdeenshire and Kincardine, characterized Labour's anticipated move as a "token gesture."
This debate intensifies as First Minister John Swinney faces increased pressure to support new North Sea drilling, particularly after one of his former top advisors publicly endorsed both the Rosebank and Jackdaw projects. Aberdeen Central MSP Jack Middleton, who previously served as a special advisor to Swinney, has declared his support for the developments, a stance echoed by Aberdeen North MP Kirsty Blackman, the SNP's chief whip at Westminster.
Despite this, the Scottish Government has not yet confirmed its official position on Rosebank and Jackdaw. A spokesperson for the Scottish Government stated that ministers are advocating for North Sea oil and gas projects to be assessed on a case-by-case basis, with climate compatibility and energy security as key considerations. They also called for the UK Government to replace the Energy Profits Levy with a fairer system.
Burnham's potential decision could also create friction with his Energy Secretary, Ed Miliband, who has previously referred to the license for Rosebank as "climate vandalism." Additionally, left-leaning MPs within Burnham's party, who prioritize Net Zero goals, may be angered by the development. Sources suggest that the incoming Prime Minister may transfer oversight of North Sea oil drilling policy away from Miliband, potentially placing it under the purview of a beefed-up 'Ministry for Industry,' with Jonathan Reynolds heavily tipped to become the new business secretary.
Enrique Cornejo, UK policy director for industry body Offshore Energies, argued that the development of Rosebank, Jackdaw, and other North Sea resources would bolster energy security, support skilled jobs, and drive investment across the UK. "While we use oil and gas, it is common sense that we prioritize our own production, our own jobs, value in our economy, delivered with lower emissions than imports," Cornejo stated.