Burnham's North Sea Energy In-Tray: Rosebank, EPL, New Licences
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- Andy Burnham is set to enter Downing Street this weekend, with Labour deputy leader Lucy Powell telling Laura Kuenssberg he will honour the 2024 manifesto pledge barring new oil and gas exploration licences but that there will be a "change of emphasis" on North Sea production
- Donald Trump posted on Truth Social that Aberdeen residents were "dancing in the streets" because Burnham would "open up, all the way" North Sea oil — a claim the article calls "a little premature"
- Rosebank and Jackdaw field approvals are being reconsidered after Greenpeace and Uplift won a legal challenge arguing ministers had not weighed the full climate impact, with Offshore Petroleum Regulator consultations closing in August
- The government has already allowed "tie-backs" — production in unlicensed areas connected to licensed infrastructure — which Powell said "dances around" the manifesto commitment without technically breaking it
- The Energy Profits Levy, introduced when prices spiked at the start of Russia's invasion of Ukraine and carrying a headline rate of 78%, is due to be replaced in 2030 by a new windfall tax that only triggers when prices are high
- The article argues the EPL is what the oil and gas industry most wants Burnham to address, since supermajors like BP, Shell and TotalEnergies have been selling assets to smaller operators focused on extracting existing fields rather than exploring new ones
Why it matters: Burnham faces a choice between the politically visible but legally constrained Rosebank and Jackdaw decisions and the economically consequential but unglamorous 78% Energy Profits Levy reform — the article argues the industry is far more invested in EPL reform than new exploration licences, meaning his reindustrialisation mission could succeed or stall depending on which lever he pulls first rather than on the drilling headlines Trump is celebrating.
