Kemi Badenoch, a Conservative minister, has urged the incoming Prime Minister Andy Burnham to reverse the Labour party's stance on opposing new oil and gas drilling licenses in the North Sea. Badenoch stated that Burnham should reject the influence of those she described as ‘Net Zero zealots,’ citing Ed Miliband as an example.
Speaking at a roundtable with industry leaders near Aberdeen, Badenoch emphasized that new Prime Minister must not yield to opposition against new North Sea fields. She identified looming decisions on the Rosebank and Jackdaw projects as an early test for Burnham's administration. Labour's current policy is to oppose new drilling licenses as part of its climate protection strategy.
Badenoch, who was speaking at NHV Helicopters in Dyce, a company that services offshore energy operations, returned to the Aberdeen area shortly after the Conservative party's victory in the Aberdeen South byelection, which was framed as a referendum on North Sea jobs.
She suggested that if Burnham had common sense, he would permit North Sea oil and gas drilling. Badenoch also implied that if Keir Starmer had overruled Ed Miliband, he might still hold the Prime Minister position. She called for Burnham to dismiss Miliband as energy secretary and abandon the license ban upon taking office.
According to Badenoch, reversing the license ban would signal to businesses, the oil and gas sector, and the nation that Burnham is serious about economic growth, contrasting it with what she termed Ed Miliband’s growth-hindering policies. She expressed concern that many Labour MPs remain rigidly focused on Net Zero targets, potentially leading to increased reliance on more polluting imports due to reduced domestic production.
Badenoch stated that while climate change is a shared concern, current Net Zero plans are not effective. She argued that domestic drilling results in a lower carbon footprint compared to importing oil and gas, suggesting that the current approach inadvertently worsens environmental issues. She believes Conservatives understand this, advocating for increased domestic drilling and new licenses, along with lifting the energy profits levy.
A government regulator has initiated a public consultation on the Rosebank and Jackdaw oil fields. If approved, these fields could potentially supply 10% of the UK's energy needs. Their final approval, which rests with the energy secretary, was delayed by legal challenges and increased scrutiny prior to the general election.
Badenoch views the approval of these fields as a crucial test of Burnham's commitment to economic growth, highlighting that they represent an estimated £4 billion in tax revenue within the current parliamentary term. She also criticized the Scottish government's proposed private jet tax, set to begin in 2028, which could cost companies £30 million annually. Badenoch described this as evidence of an SNP government lacking new ideas and resorting to taxation without understanding its impact on business and revenue generation. She argued that taxing private jets, which can be essential for certain businesses operating in remote areas, could harm economic activity and ultimately reduce government income.
Among the industry representatives present at the roundtable were Offshore Energies UK, Adura, Well-Safe, Baker Hughes, and Harbour Energy. Badenoch stated her return to Aberdeen was to assure local residents of her party's continued support for their concerns. She emphasized her commitment to the city and its jobs, asserting that her party's engagement extends beyond election periods.