Andy Burnham could approve fresh drilling for gas in the North Sea within days as he seeks a way to reduce domestic energy bills.
The PM and Energy Secretary Miatta Fahnbulleh are said to be lining up approval for the Jackdaw field off Aberdeen as early as the middle of September ahead of his first party conference as Labour leader.
Environmental groups oppose the developments but the offshore industry has stressed the economic and energy security benefits.
Supporters say it could create 3,500 jobs during construction and 880 over the course of its useful lifetime.
North Sea gas is mainly used domestically, whereas oil is mainly exported, meaning it is more useful in helping reduce the cost of bills for homeowners.
Production was approved by the previous Conservative government in 2022, but those decisions were quashed after a legal challenge by Greenpeace, leaving Labour ministers to decide whether drilling should go ahead.
The Prime Minister has faced pressure from climate activists and some of his own backbenchers to ‘stick to the spirit of Labour’s manifesto commitment’ and refuse consent.
But Mr Burnham has previously said he would ‘take a pragmatic approach when it comes to the North Sea’, indicating a possible change in the party’s approach to drilling.
The PM and Energy Secretary Miatta Fahnbulleh are said to be lining up approval for the Jackdaw field off Aberdeen as early as the middle of September
Supporters say it could create 3,500 jobs during construction and 880 over the course of its useful lifetime
The Prime Minister has faced pressure from climate activists and some of his own backbenchers to ‘stick to the spirit of Labour’s manifesto commitment’ and refuse consent
Jackdaw and the associated Rosebank oil field are both supported by the candidates to be the new Scottish Labour leader, and a consultation on whether to go ahead closed last month.
And yesterday, Tory shadow energy secretary Andrew Bowie put fresh pressure on the new administration to get a move on.
He told Climate Transition Minister Kate White in the Commons: ‘The public consultation on Rosebank and Jackdaw has now closed, so the department can no longer hide behind process, delay or consultation exercises.
‘It has dithered, prevaricated and delayed for far too long. Industry and workers in and around Aberdeen, and indeed across the United Kingdom, need an answer now.
‘We have a new Prime Minister and a new Secretary of State, so how about a new direction? That is what our oil and gas industry needs. That is what the thousands of workers in it, who do not know what lies ahead of them, need.’
She replied: I appreciate that there is a huge amount of interest in the process, but I am sure we can all agree that we want this robust process to take its course.
‘The worst thing that could happen would be something prejudicing or interfering with the process, and we end up having to rerun it. We will be following that due process.
‘As I said, the process ended in August, and the Secretary of State will be taking the decisions in due course.’
