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New prime minister Andy Burnham wants to pose as a champion of the North Sea oil and gas industry but looks set to squander the area’s potential even as the value of the UK’s untapped reserves soars.
Mr Burnham’s team has indicated that he could soon give the green light to controversial North Sea developments that were left in limbo following an intervention by a Scottish court.
However, he seems likely to go ahead with a ban on new North Sea drilling that could cost both the UK and the Labour party dear.
Mr Burnham could try to boost his claim to be a supporter of British industry by backing plans for the Rosebank and Jackdaw oil and gas developments, which Scotland’s Court of Session found the former conservative Government had been wrong to approve.
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The court said ministers had failed to take account of the emissions that would be generated from the use of the fields’ reserves.
The Labour Government introduced a revised assessment process to address the court's concerns.
The firms leading work on Rosebank and Jackdaw are in a public consultation process which is due to end next month.
They claim production from the fields will have minimal impact on global emissions but will provide a valuable boost to UK energy security. Work on the fields will support thousands of jobs.
Greens remain bitterly opposed and former energy minister Ed Miliband sat on the applications as he proposed to impose a ban on new exploration licences. This is intended to show the UK is playing a leading role in the global drive to cut emissions.
Mr Burnham can approve Rosebank and Jackdaw without breaching that ban as the relevant exploration licences were awarded years ago.
If he........
