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Newly appointed Prime Minister Andy Burnham is facing his most important first decision regarding energy policy, and North Sea businesses are warning that the industry may not survive much longer waiting on his decision.
This week the public consultations for the Rosebank oil field west of Shetland and the Jackdaw gas field 150 miles east of Aberdeen both closed, pushing the final decisions onto Burnham’s desk. The two fields could bring more than 3,500 jobs and £20 billion to the British economy. BP has already begun the process of selling its North Sea business, and energy sector executives say the window is closing fast.
Burnham, who became Prime Minister in July after Keir Starmer’s government fell, has already begun to soften the harder edges of Labour’s energy positions. He told reporters last week that he supports North Sea extraction of oil and gas as long as the proceeds help speed the transition to clean energy. “We won’t be able to stop using oil and gas for some time, that’s just a fact,” Burnham said. “The question is whether we can accelerate use of it so that we pay for the transition.”
Reports Sunday indicated that Burnham is leaning toward approving the Jackdaw gas field, though no formal decision has been made. The fate of Rosebank — which would produce both oil and gas — remains far less certain.
There are also strategic dimensions beyond British domestic politics. U.S. President Donald Trump pressed Burnham directly in their first phone call to “open up the North Sea,” and sources indicate the new Prime Minister acknowledged the request. Trump has consistently advocated for European energy independence from Russian supply as both a strategic and economic priority.
Opposition Conservatives accused Burnham of dithering at a critical moment. Shadow Scottish Secretary Andrew Bowie said the decision could be the “difference between life and death” for an industry that has supported the UK for generations.
Scotland’s First Minister John Swinney has also backed both projects. Industry executives say decisions cannot wait much longer — investment windows close, and rigs and crews get committed elsewhere.
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