The incoming Labour government faces its first major policy test with Andy Burnham poised to become Prime Minister. As he prepares for office, Mr Burnham is being urged by industry leaders and trade unions to reconsider the UK's stance on North Sea oil and gas exploration, a move that could have far-reaching implications for energy security and climate change.
The fate of two contentious oil fields, Rosebank and Jackdaw, hangs in the balance. While Labour's 2024 manifesto explicitly stated a commitment against issuing new exploration licences, these projects were already underway before the election. The approach taken by Mr Burnham's government on these fields will signal his broader stance on the North Sea energy sector.
Pressure is mounting on Mr Burnham from various quarters. Proponents of continued drilling argue that supporting the industry is crucial for domestic production, manufacturing, and the communities that have historically powered the nation. This argument resonates with some in Labour, particularly those from regions affected by de-industrialisation. Some Scottish Labour MPs are reportedly anticipating a more accommodating approach from Mr Burnham compared to previous administrations.
However, environmentalist MPs within Labour are strongly opposed to further drilling, citing the urgent need to address climate change amidst a summer of extreme temperatures. They argue that accelerating the transition to renewable energy sources should be the government's priority. This internal debate highlights the core tension Mr Burnham embodies, having previously taken climate action as Mayor of Greater Manchester while also witnessing the impact of industrial decline.
The shifting landscape extends beyond Labour. There appears to be an evolving position within the Scottish National Party (SNP) as well. While Nicola Sturgeon's administration in 2023 set out a presumption against new drilling and opposed the Cambo oil field in 2021, current First Minister John Swinney has indicated a softening of stance earlier this year. This adaptation is attributed to factors such as the ongoing cost of living crisis, the prolonged conflict in Ukraine, and persistent uncertainties regarding global energy supply routes, particularly through the Strait of Hormuz.