
Andy Burnham becomes UK’s seventh prime minister in a decade

US President Donald Trump has welcomed what he says are plans by new UK Prime Minister Andy Burnham to allow unrestricted drilling in Britain’s “invaluable” North Sea oil and gas fields.
The North Sea, a body of water between the United Kingdom and Norway, is a key part of the UK’s offshore oil and gas sector.
“It is one of the Greatest Sources of quality Oil on Earth…and will make the United Kingdom, from a Poverty Stricken Disaster, to one of the Richest Countries anywhere in the World!,” Trump posted to Truth Social yesterday.
Burnham has not yet committed to issuing new exploration licences in the North Sea, however, something his Labour Party vowed to end in its 2024 election manifesto.
But he could potentially push for two major new North Sea oil and gas projects off the coast of Scotland, Jackdaw and Rosebank, to go ahead. That’s because these projects were already licensed by the former Conservative government, before being tied up in legal action.
For context: UK offshore oil and gas production tumbled in 2024 to around 1.1 million barrels of oil equivalent a day, a standardized energy measurement, from a peak of 4.6 million barrels in 1999, according to government figures. However, there is scope to increase production, with estimated proven reserves of 2.9 billion barrels, according to the industry regulator.
Bills, bills, bills: More domestic production will have little effect on energy bills, because oil and gas prices are set on international markets.
Most oil produced in the North Sea is exported, so increasing output won’t materially improve energy security either — although it could potentially support higher tax revenues.
The oil and gas industry has called for a “policy reset” to “back North Sea oil and gas over increased reliance on imports.” Environmental campaign group Uplift, meanwhile, argues that the most secure energy system “is one that relies on homegrown renewable energy.”
