North Sea oil industry urges Burnham to approve new drilling in UK waters
Summary
The UK North Sea oil industry is urging the Labour government, expected to be led by Andy Burnham, to approve more oil and gas drilling in UK waters. Industry groups say increased domestic production will support British manufacturing and energy security while critics argue the focus should be on renewable energy.Key Facts
- Over 400 Labour MPs received a letter from the oil industry group Offshore Energies UK (OEUK) asking for approval of new drilling projects.
- The letter emphasizes using Britain's existing oil and gas resources alongside building a lower-carbon energy system.
- Andy Burnham, likely next UK prime minister, aims to revive British manufacturing and industrial jobs, including energy and steel sectors.
- Two major North Sea projects, Rosebank (oil) and Jackdaw (gas), have uncertain futures under the current Labour government.
- Jackdaw gas project could start supplying homes by next winter if approved; Rosebank oil project would take longer and mostly export to Europe.
- Energy Secretary Ed Miliband has previously criticized new drilling but may approve the Jackdaw project to strengthen his political standing.
- Critics argue continued drilling delays the shift to renewables and increases reliance on imports; they call for investment in renewable energy industries like wind power.
- The government faces pressure to lower electricity costs, which are currently high due to expensive imported gas.
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