Conservative leader Kemi Badenoch has sharply criticized Labour leader Andy Burnham's expected announcement regarding the future of oil and gas drilling in the North Sea. Burnham is anticipated to approve the Scottish oil fields, Jackdaw and Rosebank, but Badenoch contends that Labour's hesitation has led to lost investment and jobs.
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. She called for an end to all future oil and gas development bans, suggesting Burnham's plans do not go far enough. It remains unclear if Burnham will deviate from Labour's 2024 manifesto pledge, which stated no new licenses would be issued but existing ones would be honored.
Andrew Bowie, Conservative MP for West Aberdeenshire and Kincardine, described Labour's anticipated move as a "token gesture." The Rosebank and Jackdaw developments were initially approved by the previous Conservative government but faced delays due to legal challenges and the requirement for fresh environmental assessments. The current Labour government must now grant final approval following a new consultation.
Badenoch emphasized the significant economic potential, stating, "Just two pieces of paper stand in the way of billions of pounds of tax revenues and enough gas to meet 10 per cent of our needs." She added that "Rosebank and Jackdaw should have been producing by now with other developments queuing up to start drilling behind them."
The announcement is set to occur weeks after the SNP's defeat in the Aberdeen South by-election, which the Conservatives framed as a referendum on oil and gas policy.
Burnham's potential approval could create friction with his Energy Secretary, Ed Miliband, who previously labeled the Rosebank license as "climate vandalism." Sources suggest that incoming Prime Minister Burnham may transfer control of North Sea oil drilling policy from the Energy Secretary to the new business secretary, expected to be Jonathan Reynolds, as part of an expanded "Ministry for Industry."
Industry body Offshore Energies, represented by UK policy director Enrique Cornejo, stated that developing North Sea resources like Rosebank and Jackdaw would bolster energy security, support jobs, and foster investment. Cornejo argued, "While we use oil and gas, it is common sense that we prioritise our own production, our own jobs, value in our economy, delivered with lower emissions than imports."
The renewed debate coincides with pressure on First Minister John Swinney to support new North Sea drilling. Aberdeen Central MSP Jack Middleton, a former special adviser to Swinney, has publicly endorsed both the Rosebank and Jackdaw projects. Kirsty Blackman, SNP MP for Aberdeen North and the party's chief whip at Westminster, has also backed the developments.
The Scottish Government stated its ministers advocate 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," and called for the UK Government to replace the Energy Profits Levy with a fair system. The Scottish Government has not yet confirmed its official position on Rosebank and Jackdaw.