LONDON — Andy Burnham said Thursday he “can’t ignore” Britain’s North Sea oil and gas resources — a point he stressed to Donald Trump last week.
Britain’s new prime minister said he talked up a “pragmatic approach” to the energy sector in his first conversation with the U.S. president.
“I indicated in the phone call that we had a week last Monday that I would take a pragmatic approach when it comes to the North Sea, and that is my intention as we go forward from here,” Burnham said of the exchange.
“There is a resource there — when people are struggling, we can’t ignore that. Hence, me indicating that to the president,” he added.
Labour said it would not issue new oil and gas drilling licenses in its 2024 manifesto, though indicated it would honor existing ones.
But the U.K. government is now under pressure from political opponents in the Conservative and Reform UK parties to reverse that policy amid rising energy costs.
Trump repeatedly raised the future of the North Sea with Keir Starmer, urging the former prime minister to U-turn.
Answering questions in the Oval OfficeWednesday, Trump said Burnham had told him he was going to “open up the North Sea” in their first call.
“If you use the North Sea, the U.K. will be a really rich country. I cannot get the point across. The new gentleman, when I spoke to him, said he’s going to open up the North Sea,” Trump said.
Burnham previously said he is “open-minded” about the prospect of more drilling in the North Sea — but is yet to announce any change of approach.
Two major oil and gas fields Rosebank and Jackdaw — which already have licenses — are awaiting environmental clearance to drill, and the approval of their field development plans.
If Burnham’s government gives the go-ahead it would be controversial, but would not directly breach the government’s manifesto commitments.
The oil and gas industry is also pushing the Treasury to ease its tax burden.
The Energy Profits Levy, dubbed the ‘Windfall Tax’, was both extended and hiked by Starmer’s government — placing an effective 78 percent tax rate on oil and gas producers until 2030.