The incoming prime minister, Andy Burnham, is expected to announce plans for new oil and gas drilling in the North Sea, a move that would reverse a key Labour manifesto pledge and reignite a fierce debate about the UK's energy future. At the heart of the row are two oil and gas fields off the Scottish coast: Rosebank and Jackdaw. Their licences were approved by the previous Conservative government in 2022 and 2023, but overturned in 2025 after a legal challenge. Burnham is expected to signal his support for these projects, though the final decision will fall to his new energy secretary.
The controversy centres on whether the UK should issue new licences for North Sea oil and gas extraction. Labour's 2024 manifesto, which Burnham had promised to follow, said the party would not issue new licences but would honour existing ones. However, trade unions and some Labour MPs have urged Burnham to back the sector, arguing that domestic production can help keep energy bills down and improve energy security, especially given global instability such as the Iran war and repeated closures of the Strait of Hormuz. On the other side, climate campaigners and some within Labour, including the outgoing energy secretary Ed Miliband (who once called the Rosebank licence "climate vandalism"), insist that new drilling is incompatible with the UK's net-zero commitments and that the focus should shift entirely to renewable energy.
“An explainer on the UK debate over new North Sea oil and gas drilling licences.”
The debate is not new. The North Sea has been a major source of UK oil and gas for decades, but production has been declining. In March 2026, the Guardian reported that hundreds of new North Sea licences granted by the Conservatives during their 14 years in power produced just 36 days of gas. Critics argue that new licences will not lower household bills quickly, as oil and gas are sold on global markets. Supporters, including the Conservatives and Reform UK, counter that using the UK's own resources reduces reliance on imports and provides a buffer against price spikes.
For UK readers, the outcome matters directly to household energy bills, the pace of the transition to renewables, and the climate goals the country has set. If Burnham approves new drilling, it could signal a significant shift in energy policy, potentially delaying investment in wind and solar. If he sticks to the manifesto ban, it could mean higher short-term costs for consumers but a faster path to net zero. The decision also has political implications: Burnham has touted a "No 10 North" vision and promised to lead for all parts of the UK, and the North Sea debate is especially sensitive in Scotland, where Rosebank and Jackdaw are located.
Q: Why is the Rosebank and Jackdaw decision so controversial? These two fields were approved under the Conservatives but overturned in 2025 after a court ruled that the government must consider the environmental impact. Labour is split: unions and some MPs want drilling to protect jobs and energy security, while climate advocates argue it undermines the UK's net-zero goals. The new prime minister's stance will set a precedent for future licences.
Q: Could new North Sea drilling lower my energy bills? Supporters say yes, because domestic production reduces reliance on imports and could stabilise prices. But critics point out that oil and gas are traded globally, so UK prices are set by international markets, not local supply. A Guardian investigation in March 2026 found that hundreds of recent licences produced only 36 days of gas, suggesting limited impact on bills.
Q: What is the UK's current policy on new oil and gas licences? Labour's 2024 manifesto promised to stop issuing new licences but to honour existing ones. The previous Conservative government had approved licences, including Rosebank and Jackdaw. Andy Burnham is expected to relax this ban and allow new drilling, though he has not yet made a formal announcement.
What happens next depends on Burnham's first moves as prime minister. He is expected to announce his energy policy on Monday 20 July, alongside a raft of other measures including plans to take water and energy companies under public control. The legal status of Rosebank and Jackdaw means he cannot explicitly approve them immediately, but he will likely nod to his support in his first speech. The new energy secretary will then have to decide how to handle the court ruling and whether to issue fresh licences. The debate is unlikely to end there: climate activists have already promised legal challenges, and the Conservatives and Reform UK will continue to push for more drilling. The UK's energy future hangs in the balance.