BP puts North Sea business up for sale

The North Sea has increasingly become a topic for political debate.

In its 2024 general election manifesto, Labour said it would not issue new licences for drilling, but would honour existing ones.

But in recent months, as the Iran war pushed up global oil prices, calls have grown for more North Sea drilling to be approved, from the Conservatives, Reform UK and from President Trump, while also becoming a divisive issue within the Labour party.

Some Labour MPs have urged the government to take a more liberal approach, warning that the transition away from oil and gas must protect jobs and the cost of energy bills.

But others have backed the government’s existing approach, arguing that expanding renewable energy is key to improving energy security and reducing the impact on climate change.

As energy secretary in Sir Keir Starmer’s government, Ed Miliband was a staunch supporter of the manifesto position. Miliband is now the foreign secretary in Burnham’s government.

Burnham himself has seemingly left the door open to future drilling. He said he told President Trump this week: “There is a resource there. When people are struggling – you can’t ignore that.”

Labour’s deputy leader Lucy Powell previously told the BBC that Burnham would stick to the party’s manifesto commitments, but there would be a “change of emphasis” on North Sea oil and gas.

Oil and gas companies have also criticised the UK’s windfall tax, which they argue means the North Sea has lost some of its appeal in recent years.