The UK\u2019s North Sea oil industry has made a last-ditch attempt to curry favour with the Labour government by appealing to Andy Burnham\u2019s reindustrialisation agenda just days before he is expected to become Britain\u2019s next prime minister.<\/p>\n
Industry lobbyists have written to more than 400 Labour MPs to call on the government\u2019s new leaders to allow more oil and gas drilling in UK waters to support homegrown energy and show \u201ca commitment to UK manufacturing, industrial capability and the skilled workforce that has powered the nation for generations\u201d.<\/p>\n
The letter from industry group Offshore Energies UK (OEUK) was co-signed by more than 10 business groups linked to the oil and gas industry as well as the GMB trade union.<\/p>\n
It said that while they support the government\u2019s ambition to build a secure, \u201clower-carbon\u201d energy system, the transition would be \u201cstronger and fairer\u201d if it were \u201cbuilt on an all-energy approach: one that builds on our industrial strengths rather than overlooks them\u201d.<\/p>\n
Burnham has vowed to tackle the deindustrialisation of Britain\u2019s economy over recent decades as part of his plan to encourage greater devolution of political power and create \u201cgood growth in every postcode\u201d.<\/p>\n
This includes a promise to \u201csafeguard sovereign manufacturing and production capability across the country in critical sectors such as steel, defence, energy, food and farming\u201d.<\/p>\n
However, it is not clear what a Burnham premiership would mean for the government\u2019s approach to the North Sea. Under Ed Miliband, the energy secretary, the fate of two major North Sea projects \u2013 Rosebank and Jackdaw \u2013 has remained in limbo since Labour came to power with the promise to ban new exploration licences.<\/p>\n
Rosebank and Jackdaw were granted licences under the previous government, meaning there would be no breach of the Labour government\u2019s manifesto pledge if the government gave final consent for the two projects to proceed.<\/p>\n
Miliband was widely expected to overrule the Jackdaw gas development and the Rosebank oil project, which he has previously described as \u201cclimate vandalism\u201d. But the energy secretary is now reportedly willing to consent to Jackdaw, according to the Observer, to prove he could be a credible successor to Rachel Reeves as Burnham\u2019s chancellor.<\/p>\n
The Jackdaw project has promised to begin producing gas for British homes as soon as this coming winter if given the go-ahead by the government. However, Rosebank would take longer to begin production and would produce mostly oil for export to refineries in Europe.<\/p>\n
The OEUK\u2019s letter made a case for more drilling, saying that Britain \u201cwill continue to need oil and gas for decades to come\u201d.<\/p>\n