The UK's North Sea oil industry has made a last-ditch attempt to curry favour with the Labour government by appealing to Andy Burnham's reindustrialisation agenda. In a letter to over 400 Labour MPs, industry lobbyists argued that allowing more oil and gas drilling in UK waters would support homegrown energy and demonstrate 'a commitment to UK manufacturing, industrial capability and the skilled workforce that has powered the nation for generations.'
The letter, co-signed by more than 10 business groups linked to the oil and gas industry and the GMB trade union, was sent ahead of Burnham's expected appointment as the next Prime Minister. Burnham has vowed to tackle the deindustrialisation of Britain's economy and promote devolution of power to create 'good growth in every postcode'. This includes a promise to 'safeguard sovereign manufacturing and production capability across the country in critical sectors such as steel, defence, energy, food and farming'.
The fate of two major North Sea projects, Rosebank and Jackdaw, remains in limbo since Labour came to power. Both projects were granted licences under the previous government and would not breach Labour's manifesto pledge to ban new exploration licences. However, the energy secretary, Ed Miliband, has previously expressed concerns about the projects, describing them as 'climate vandalism'. It is unclear what a Burnham premiership would mean for the government's approach to the North Sea, but industry insiders suggest that the new government may reconsider its stance on the projects.
Industry leaders argue that drilling will support homegrown energy and show a commitment to UK manufacturing. Steve Elliott, chief executive of the Chemical Industries Association, said: 'Backing North Sea oil and gas alongside renewables is not about slowing progress. On the contrary, it is about strengthening industrial competitiveness, protecting jobs and reducing reliance on imports in an increasingly volatile world.'
However, critics argue that new drilling will do little for energy security and that the UK should focus on investing in renewable energy. Robert Palmer, deputy director of Uplift, said: 'New drilling will do little for energy security. Without a rapid shift to abundant renewable energy, the UK will become ever more reliant on imported gas.'