Andy Burnham is set to announce plans for new oil and gas drilling in the North Sea upon becoming prime minister on Monday, a move that appears to diverge from the Labour Party's 2024 manifesto. The manifesto had pledged not to issue new drilling licences, though it committed to honouring existing ones.

The announcement comes amidst a deeply divided debate within the Labour Party regarding the future direction of its energy policy. The decision to potentially permit new drilling activities places Burnham at the center of a contentious issue, as different factions within the party hold opposing views on the balance between energy security, economic impact, and climate change commitments.

Central to the debate are two significant oil and gas fields in Scotland: Rosebank and Jackdaw. Although regulators approved these fields in 2022 and 2023 under the previous Conservative government, their development was halted in 2025 following a legal challenge. The specifics of Burnham's new plans for these or other North Sea fields remain unclear.

This policy shift could have significant implications for the UK's energy landscape, potentially impacting both its commitment to climate targets and its energy independence. It also signals a willingness by the incoming prime minister to address concerns from industry and trade unions about job preservation and economic stability.

Some Labour Members of Parliament have advocated for a more flexible approach to energy policy, emphasizing the need to protect jobs and manage the cost of energy bills during the transition away from fossil fuels. They argue that a rapid shift without careful consideration could harm communities reliant on the oil and gas sector.

Conversely, other party members and environmental advocates maintain that prioritizing renewable energy expansion is crucial for enhancing energy security and mitigating the effects of climate change. They point to the potential for green jobs and a sustainable energy future.

Ed Miliband, the current Energy Secretary, has been a vocal proponent of the Labour manifesto's original stance. He previously characterized the licence issued for the Rosebank field as "climate vandalism," underscoring the strong opposition some within the party hold towards new fossil fuel extraction.

Earlier this week, the oil and gas industry and affiliated trade unions jointly issued a letter to Burnham and other Labour MPs, urging their support for continued North Sea oil and gas production. The letter framed such support as a vital signal of national commitment to domestic industry, manufacturing, and the workforce that has historically powered the country.