Andy Burnham open to backing new North Sea oil and gas projects
Andy Burnham is open-minded to giving the green light to more oil and gas licences in the North Sea in a bid to help reindustrialise Britain and boost jobs, LBC understands.
The PM-in-waiting is understood to be sympathetic to calls from the industry and backbench Labour MPs to do more to boost our home-grown supplies.
It comes as leading industry figures are preparing a joint letter to the Makerfield MP from trade bodies and MPs calling on him to help the sector.
That includes key asks to give the green light to dig more in oil fields Rosebank and Jackdaw in Scotland, saying Britain’s currently on track to be importing 80 per cent of needed resources in the next decade, rather than using what we have here.
But campaigners are gearing up for a fresh fight - insisting it won’t help bring down bills and will make climate change worse.
Campaign groups Greenpeace and Uplift successfully took the government to court - and argued the government unlawfully ignored climate emissions implications.
The projects are now awaiting final government sign off from the Energy Secretary Ed Miliband, who is said to have put the decision on ice.
Allies of Mr Burnham, who this week has secured the support of more than 300 MPs in his bid to become Labour leader, said his priorities are "doing what is best for Britain", and that he’s open-minded to doing "whatever is necessary" to back our industries.
A spokesperson said: “Andy is committed to bringing down energy costs for households and businesses, making everyday life more affordable while ensuring British industry can compete and invest.
“Andy will set out plans to give households and businesses the breathing space they need, including through greater public control of essential utilities such as energy, water and transport.”
Industry leaders say his top priority should be to give the green light to expand oil and gas drilling.
And they’ll tell him current government policy flies in the face of his plan to "reindustrialise Britain" as he promised in his major economy speech last week.
Scottish leader Anas Sarwar, who called for Sir Keir Starmer to stand down after the Gorton and Denton by-election loss in February, is said to have been lobbying Mr Burnham behind the scenes on the matter.
The current Energy Secretary, Mr Miliband, is thought to be one of Mr Miliband’s favoured picks for Chancellor, but he is seen as a controversial figure for the industry thanks to his Net Zero drive.
It’s thought there are around 240,000 jobs in the industry, which is worth around £31billion a year to the economy.
David Whitehouse chief executive of Offshore Energies UK, which represents more than 450 energy-related told LBC: "At a time when economic growth, industrial competitiveness and tackling climate change are all national priorities, the UK needs a reset that backs domestic energy production – including our own oil and gas – rather than increasing dependence on imports.
"We support the government’s ambition for a secure, lower-carbon energy system, with continued growth in offshore wind, carbon capture, hydrogen and other low-carbon technologies. But the transition will be faster, more resilient and more affordable if it takes an all-energy approach that builds on the UK’s existing industrial strengths.
"Today, government policy leaves us importing diesel and jet fuel refined from Russian crude while failing to prioritise domestic oil and gas production. That sends the wrong signal to the workers, businesses and communities that have powered this country for generations and will be critical to its future.
"That is why – for our jobs and communities, our economy and energy security, and to deliver on our climate goals, the sector is asking a new government to back North Sea oil and gas. Not imports."
They also want to see more generous tax and regulation for the industry, and for the phasing out of the energy profits levy.
But campaigners have long opposed the move, and say it just helps oil and gas companies line their pockets.
Robert Palmer, Deputy Director at Uplift - is fighting the move.
He told us: "Jackdaw will do nothing to bring down our energy bills, and it will only reduce our reliance on imported gas by 2%.
"What it will do is continue to enrich the oil and gas companies and their bosses who own the gas field. What we really need to do if we want to bring down bills, if we want to secure energy supply, and if we want to stop the climate crisis, which is getting worse, is to double down on renewables and help households get off oil and gas and the dependence on oil and gas.
"And we can see this week with the heat wave across England and the UK where we’re sweltering, this heat is caused by fossil fuels and continuing to burn fossil fuels.
"So we need to stop burning fossil fuels, and we need to get onto renewables as quickly as we can."
And Greenpeace political campaigner Angharad Hopkinson told us: "We urge Andy Burnham to stick to the spirit of the manifesto, which said they would approve no new licences in the North Sea, and to reject new fields like Rosebank and Jackdaw.
"These new fields won’t provide us future climate stability and won’t lower our bills either."
Seven Scottish Labour MPs have also lent their backing to a letter in support of opening up Jackdaw and Rosebank.
One Scottish Labour MP who didn’t want to be named says many of their colleagues want it to ahead - but don’t feel able to go against the Government position in public.
Labour MP Graeme Downie, Dunfermline and Dollar MP told LBC: "We are already seeing a more pragmatic approach to oil and gas.
"In Scotland there’s a particular importance about the communities that support these jobs and not making the mistakes from previous transitions."
The SNP’s position on more oil and gas production has softened in recent months, with Scottish First Minister John Swinney saying in the recent Scottish elections that he would support it with new tests - include the benefits of domestic production compared to importation.
But new Aberdeen Central MSP Jack Middleton has gone further - and called on the government to support it.
The SNP MSP says he wants to see the government back oil and gas - but that industry should have to meet strict environmental tests first.
The owners of Jackdaw say they are doing that in their new submission which is now open to public consultation.
He told LBC: "Scotland, like the rest of Northern Europe, needs oil and gas, not just to keep the lights on, but to survive. You can wish that wasn’t the case all you want, but in 2026, that is the reality we face.
"The important question that we’ve got to ask ourselves, is this - with all our sources of energy, in this case, gas, should we be importing our supplies from halfway around the world, or should we be using the resources that we are fortunate enough to have here on our door step in the North Sea?
"Obviously, it’s the latter.
“We can wish reality was different, but we are losing Scottish jobs in oil and gas at a significantly faster rate than but work in renewables can offer."

Technology & Business Editor
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