OPEC Oil Production Jumps, But Gulf Supply Is Still Far From Normal
Felicity Bradstock is a writer and journalist based in Mexico City. She writes for energy websites and covers several other industries, as well as writing…
With Kier Starmer stepping down as the United Kingdom’s Prime Minister (PM), it looks increasingly likely that Andy Burnham, who is known as the “King of the North”, will take his place as the leader of the Labour Party and PM in July. The Member of Parliament for the northern English constituency of Makerfield has significant political experience, having served as Mayor of Greater Manchester, but what are his plans for British energy?
Burnham has a long history in politics, serving as Shadow Home Secretary under the former Labour leader Jeremy Corbyn, and holding prominent roles under Gordon Brown, including Secretary of State for Health, Chief Secretary to the Treasury, and Secretary of State for Culture, Media and Sport.
Burnham has gone into the role strong, with plans to establish a new operation in Manchester called “No. 10 North” to give more funding and control to local leaders. As he vies for the role of PM, Burnham has promised to “do things differently”. However, it is not yet clear what his position will be on a range of subjects, including energy.
One thing is clear: Burnham plans to decentralise power if he becomes PM. In a recent speech, Burnham said that Britain is “one of the most over-centralised countries in the world” and pledged the “biggest rebalancing of power our country has ever seen.” He also called for a 10-year mission to improve living standards through re-industrialisation, a major new housing programme, changes to the welfare system, and greater state control over some major utilities.
Burnham’s re-industrialisation plan aims to safeguard Britain’s manufacturing and production capabilities, including sectors such as steel, defence, energy, food, and farming. This is likely a response to the recent geopolitical tensions caused by the United States-Israeli-led Iran war and the closure of the Strait of Hormuz, a critical trade corridor connecting Europe with Asia.
Several countries are now racing to secure their supply chains, with a greater focus on self-sufficiency. Meanwhile, Nigel Farage, the leader of the far-right Reform Party, has cited the U.K.’s industrial decline as a major reason for the country’s poor economic performance.
Another energy policy focus for Burnham is ensuring greater public control over key utilities, including water, energy, and transport.
While many Labour voters will hope for a continuation of Energy Secretary Ed Miliband’s plan for a green transition when it comes to energy, some public figures are urging Burnham to support North Sea drilling. The director of the British Chambers of Commerce (BCC), Shevaun Haviland, said that Burnham should be prepared to exploit the last remaining North Sea oil and gas to prevent mass job losses across Scotland and the north-east. Haviland said, “At the moment, instead of using those fields, we are importing liquid gas, which is more expensive and less environmentally friendly. So yes, we believe we should use our own assets.”
The Labour government must decide whether to approve fresh drilling applications for the Jackdaw and Rosebank oil fields after previous approvals were ruled unlawful by the courts for failing to adequately evaluate the climate impact of burning fossil fuels.
Environmentalists and climate scientists staunchly oppose new development, while many oil and gas companies have suggested that leaving valuable resources in the ground could hinder economic development. It will likely now be up to Burnham to decide the fate of these fields.
While Haviland voices concerns about energy jobs, Miliband recently praised the increase in U.K. jobs and growth following private companies’ pledge to invest over $133 billion in the green economy. The investment pipeline is mainly focused on offshore wind, solar power, and the electricity grid, with most of it expected to be achieved between 2024 and 2031.
The general secretary of the trade union Unite, Sharon Graham, is sceptical about Miliband’s pursuit of net-zero carbon emissions. Graham believes that Miliband would be a “noose around the neck” of job creation if he became chancellor in a government led by Andy Burnham. However, the new investment data and previous findings by the Confederation of British Industry suggest that the U.K.’s net zero economy has grown faster than the rest of the economy and generated higher-paying jobs, the British newspaper The Guardian reported.
Andy Burnham has long championed green initiatives, including renewable energy sources such as offshore wind. However, in recent months, the prospective PM has been quieter in his support for a green transition, putting greater focus on re-industrialisation. Burnham has also said that he is “open-minded” on whether to expand oil and gas drilling in the North Sea.
As Burnham vies for the role of PM with caution, it remains unclear what the politician’s strategy for U.K. energy might be. Despite having previously stated his support for green energy, Burnham has recently appeared more open to fossil fuel development. Meanwhile, his focus on re-industrialisation may be at odds with the current government’s pledge to decarbonise the economy.
Felicity Bradstock is a writer and journalist based in Mexico City. She writes for energy websites and covers several other industries, as well as writing…
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