Burnham pressed to urgently back new North Sea drilling

Andy Burnham has been pressed to urgently approve new North Sea oil and gas drilling as concerns were raised about his newly appointed Energy Secretary.

OEUK, the offshore trade body, said the “damaging” ban on exploration had left the UK trailing behind Norway.

It came as the Scottish Conservatives wrote to Miatta Fahnbulleh, the new Secretary of State for Energy Security and Net Zero, to express “deep concerns” over her past comments.

A platform in the North Sea, around 100 miles east of Aberdeen | PA

She previously advocated a goal of net-zero carbon emissions within “10 to 15 years”, with the Tories accusing her of showing “hostility towards oil and gas”.

Seen as a star of the future, Miatta Fahnbulleh was first elected in the 2024 General Election and has previously served as Parliamentary Under-Secretary of State in the Ministry of Housing, Communities and Local Government. She has now been appointed Secretary of State for Energy Security and Net Zero amid concerns from the North Sea oil and gas sector given her desire to push harder on climate change | Getty Images

Allies have said Mr Burnham will take a more "pragmatic" approach to the North Sea sector while sticking to Labour’s 2024 manifesto, in which it said it would not issue new licences.

READ MORE: Andy Burnham 'will take more pragmatic approach' to North Sea oil and gas

This could include approving the controversial Rosebank and Jackdaw fields, which were previously given the go-ahead by the Conservatives before they had to be reconsidered following a successful legal challenge by climate campaigners.

OEUK has also urged the new Prime Minister to immediately replace the energy profits levy, or windfall tax.

“The UK energy industry urgently needs regulatory approval for projects such as Jackdaw and Rosebank, alongside a pipeline of other domestic oil and gas developments, and a continuing government commitment to the development of renewables,” it said.

“Failing to exploit our own oil and gas does not alter UK oil and gas consumption. It just means we depend increasingly on imports.”

It added: “The damaging ban on exploration leaves the UK trailing behind Norway instead of partnering with it to underpin European energy security. This ban must be reversed.”

OEUK argued reforming the regulatory and tax framework for the North Sea industry could unlock an additional £50 billion in oil and gas investment.

David Whitehouse, its chief executive, said: “All of us here at OEUK congratulate Miatta Fahnbulleh on her appointment as Energy Secretary and look forward to working with her as she shapes UK energy policy to deliver on the Prime Minister’s vision to reindustrialise Britain.

“The UK will still need oil and gas for decades to come. The question is whether we produce as much of that energy as possible here, supporting our own jobs, communities and economy, or become increasingly reliant on imports while exporting investment and economic value overseas. We urge our new Energy Secretary to back North Sea production as part of a secure and managed energy transition.

"The Prime Minister has made it clear that communities and industry will be at the heart of his government. You cannot put communities first if you do not back the industries that sustain them.

“That means backing homegrown energy in all its forms, from North Sea oil and gas to offshore wind, unlocking investment and giving workers and businesses the confidence to build Britain's energy future here at home.”

In a letter to Ms Fahnbulleh, north-east Tory MPs and MSPs called on her to urgently change Labour’s approach.

“It’s crucial for our energy security that you take a different path to your predecessor, Ed Miliband, who for the last two years, has sought to shut down our vital oil and gas industry,” they said.

“However, we are deeply concerned by your intentions for another windfall tax and to make the UK fully net zero by 2034, stating it would be ‘strategically mad’ not to phase out fossil fuels.

“We are calling on you to stop this hostility towards oil and gas. The industry is part of the solution, not the problem.

“We are importing oil and gas from abroad while banned from extracting it at home – this approach is sabotaging our country.”

The letter was signed by Tory MPs Andrew Bowie, Harriet Cross and Douglas Lumsden, and by MSPs Liam Kerr, Alexander Burnett and James Adams.

Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said: “When it comes to our energy sector, there is huge remaining potential in the North Sea.

“But this future is only achievable with a fresh approach - clearing the regulatory logjam by consenting Jackdaw and Rosebank, replacing the windfall tax with the new oil and gas revenue levy and taking a more pragmatic approach on issuing new licences.

“On renewables and new energy, we need to ensure that we’re managing the transition carefully – consenting more projects, building out transmission infrastructure with pace and ensuring that new technologies are supported so Britain can lead a global revolution, rather than playing catch up.

“From high-value manufacturing, to supply chain services, to engineering excellence, our region can support that exciting new chapter – but only if we’re not held back by overregulation and punitive taxation.”

READ MORE: Was Andy Burnham right to keep Douglas Alexander as Scottish Secretary?

But Amanda Grimm, an advocacy lead at Stop Climate Chaos Scotland, said new drilling would be “foolhardy”.

She said: “Chasing new oil and gas from our massively depleted reservoirs is foolhardy, and will do nothing to lower household bills, guarantee energy supplies, lower emissions or provide good, safe jobs. Only a fast, fair and funded move to clean energy and green jobs can do that.

“Allowing drilling in new oil and gas fields like Rosebank and Jackdaw will merely pump out more emissions and line the pockets of multinational companies while Britons shiver in buildings they cannot afford to heat.

“We congratulate Andy Burnham’s new Energy Secretary, Miatta Fahnbulleh, on her appointment to this crucial role. We look forward to seeing her continue the trajectory set out by her predecessor, Ed Miliband, and support a strong and fair transition to renewables and away from oil and gas.

“Cutting VAT on energy bills is a good start, immediately lowering costs, but the price of electricity must be delinked from volatile gas to bring long-term cuts and stability.”

A Department for Energy Security and Net Zero spokesperson said: "The North Sea remains a vital national asset, supporting jobs, growth and the UK's energy security.

"We are clear that oil and gas will continue to play an important role in our energy system for decades to come, alongside renewables, nuclear and other low-carbon technologies.

“Our focus is on providing stability and ensuring the North Sea continues to make a strong contribution to the UK's economy and energy security."