New Prime Minister Andy Burnham is expected to announce a policy shift regarding North Sea drilling, potentially allowing major projects like the Rosebank and Jackdaw fields to move forward. However, a comprehensive reversal of the ban on new drilling licenses is not anticipated, Labour's deputy leader Lucy Powell indicated.
Powell clarified that while Burnham plans a "change of emphasis" on the issue, it would not constitute a fundamental policy change from the party's manifesto. She emphasized that North Sea oil and gas are considered an important part of the UK's energy transition, contributing to energy security and lower bills in the interim.
"We are really clear, we’ve been really clear, that the way to achieve in the long term energy security and lower bills is by ensuring we do have our own home-grown, clean, much cheaper energy but we’ve been absolutely clear that North Sea gas and oil is an important part of that transition, it is an important part of the mix," Powell stated.
Consultation processes are currently underway for the Jackdaw gas field and Rosebank oil field, both of which were approved by the previous Conservative government but faced delays due to legal challenges requiring fresh environmental assessments. These fields are estimated to contribute significantly to the UK economy, generating billions in tax revenue and supporting thousands of jobs.
The Labour manifesto had previously ruled out granting new drilling licenses. However, Powell noted that the party intends to honor any licenses already consented, which includes Rosebank and Jackdaw. She stated that decisions on these fields await the conclusion of legal processes and the Energy Secretary's review.
Former Net Zero and Energy Security Secretary Ed Miliband had previously described the Rosebank project as "climate vandalism." Conversely, Conservative MP Douglas Lumsden urged Burnham to abandon the ban on new licenses and the energy profits levy, warning of a betrayal to Scottish workers and damage to investor confidence.
"More of Ed Miliband’s eco zealotry will finish Labour in Scotland," Lumsden commented, referencing the outcome of the Aberdeen South by-election as evidence of public desire for domestic resource utilization.
Kemi Badenoch, leader of the Conservative Party, has also written to Burnham, urging him to drop the ban on new oil and gas licenses. She highlighted the potential tax revenues from Jackdaw and Rosebank and called for an end to what she termed "unilateral energy disarmament."
US President Donald Trump, a vocal proponent of fossil fuels, expressed his support for expanded North Sea drilling, stating that people in Aberdeen would be "dancing in the streets" and predicting a significant economic boost for the United Kingdom.
Burnham's administration is also reportedly planning other significant spending commitments, including potentially doubling foreign aid and revisiting the nationalization of Thames Water. These potential announcements are part of an effort to make a strong initial impression following his ascent to the premiership.