Burnham's North Sea Oil Plan: Trump Hails, Labour Hedges
SkimNews Take
Powell's "change of emphasis" formulation lets Burnham inherit a manifesto ban whose enforcement depends entirely on who he elevates to energy briefs.
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- Andy Burnham enters Downing Street with Labour deputy leader Lucy Powell confirming on the Laura Kuenssberg show that he'll honor the 2024 manifesto pledge banning new oil and gas licences while keeping existing ones, but with a 'change of emphasis' and 'more pragmatic approach' toward the industry.
- President Trump posted on Truth Social claiming Aberdeen residents are 'dancing in the streets' because Burnham will 'open up, all the way' North Sea oil — a characterization the BBC's reporting suggests may be premature.
- The Rosebank and Jackdaw fields will not get day-one approval from Burnham; both decisions are being reconsidered after Greenpeace and Uplift won a legal challenge arguing ministers had not assessed the full climate impact, with Offshore Petroleum Regulator consultations closing in August.
- Labour has already approved 'tie-backs' — production in unlicensed blocks tied to existing licensed infrastructure — a workaround that technically preserves the manifesto pledge but expands extraction near current sites.
- The Energy Profits Levy carries a 78% headline rate whether prices are high or low and is scheduled to be replaced in 2030 by a price-triggered windfall tax; the industry argues it has made the North Sea one of the world's least favourable investment environments.
- Supermajors BP, Shell and TotalEnergies have been selling North Sea assets to smaller operators whose focus is extracting remaining reserves in known fields rather than exploring new seabed.
Why it matters: The article argues the loud licensing fight is partly theatre: the industry's real ask is scrapping or reforming the 78% Energy Profits Levy, due to be replaced in 2030 — a move that would also draw the least opposition from environmentalists. If Burnham chooses the unglamorous tax reform over headline-grabbing new licences, he could revive North Sea investment without breaking the 2024 manifesto or returning to court.
