Business

Burnham says he told Trump UK will be pragmatic about North Sea oil

BBC Business · 2026-07-30

AI SUMMARY

• What happened: Prime Minister Andy Burnham communicated to US President Donald Trump his intention to take a "pragmatic approach" regarding North Sea oil and gas drilling, amidst pressure from various stakeholders for increased drilling. • Why it matters: This statement comes as the UK government faces a dilemma between economic pressures to boost energy production and commitments to climate policies, with potential implications for both domestic energy prices and environmental concerns. • What to watch next: Observers should monitor the government's decisions on drilling licenses for key sites like Rosebank and Jackdaw, as well as any shifts in policy regarding the Energy Profits Levy, which could influence the future of North Sea oil exploration.

Image source, Getty ImagesByKate WhannelPolitical reporterPublished5 hours agoPrime Minister Andy Burnham has said he told US President Donald Trump he would take a "pragmatic approach" to the issue of North Sea oil and gas.Trump has long urged the UK to increase drilling and claimed that Burnham had pledged to "open up the North Sea" in their first phone call together. Asked about the president's comments, the new prime minister said: "There is a resource there. When people are struggling - you can't ignore that and hence me indicating that to the president."Burnham has faced pressure from some trade unions, industry figures and some of his own Labour MPs to back increased drilling in the North Sea.In its 2024 general election manifesto, Labour promised not to issue new licences for drilling but said it would honour existing ones.As energy secretary in Sir Keir Starmer's government, Ed Miliband was a staunch supporter of Labour's manifesto position. He has previously described the licence issued to Rosebank, Britain's largest untapped oil and gas field, as "climate vandalism".Miliband is now the foreign secretary in Burnham's government.Is Burnham promising a new dawn for North Sea oil and gas?Published19 JulyTo drill or not to drill? Andy Burnham faces North Sea oil dilemmaPublished15 JulyThe city caught in the middle of the big energy shift debatePublished30 AprilAlthough the government has not made any announcements on the issue, Trump has praised what he perceives as a change of stance by the UK government. In a social media post, published the day before Burnham became prime minister,, external Trump wrote: "The People of Aberdeen, in Scotland, are dancing in the streets because the new Prime Minister, Andy Burnham, has stated that he will be opening up, all the way, the invaluable North Sea Oil!"This week, when asked about his conversation with Burnham, Trump said: "He said he's going to open up North Sea oil."If he does that, you're going to be a wealthy country." He later added: "You buy a lot of your energy, as you know, from the North Sea. You buy from Norway and Norway gets it from the North Sea... Norway's got trillions of dollars in the bank." "Scotland has a better part of the North Sea."Asked about Trump's comments, Burnham said: "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."In response, Green Party leader Zack Polanski said: "Our country is burning. Crops are failing. Thousands have been killed by extreme heat. "Allowing new oil and gas drilling in the North Sea will worsen the climate breakdown putting more lives at risk and doing untold damage to our economy."It's not too late for Burnham to do the right thing and commit to leaving dangerous fossil fuels in the ground."The Conservatives and Reform have urged the government to approve more drilling in the North Sea, arguing it would reduce energy prices. Last year, Tory Party leader Kemi Badenoch said it would be "absurd" for the UK to leave "vital resources untapped".Some Labour MPs have expressed unease about more drilling, with Rachael Maskell urging the government to "follow the climate science because we have got a climate emergency". Simon Francis, from the End Fuel Poverty Coalition, said: "No household struggling with their energy bills will see a penny come off by drilling more from the North Sea."Gas is sold at the global market prices, so whatever is pumped out is sold to the highest bidder, not handed to British billpayers at a discount."Sir Keir's government had already made concessions, allowing "tie-backs" - production in unlicensed areas close to or connected to already licensed areas.Currently, the debate over North Sea drilling has focused on two oil and gas fields - Rosebank and Jackdaw, located in Scotland. In 2022 and 2023, regulators approved drilling at the sites, but that was overturned in 2025 following a legal challenge. The legal process is ongoing, but the government will at some point have to decide whether to permit companies to produce oil in the two areas.Other oil and gas licences have been approved in recent years but remain largely undeveloped.If he wanted to encourage more drilling in the North Sea, Burnham could also opt to scrap the Energy Profits Levy, also known as the windfall tax.Sign up for our Politics Essential newsletter to read top political analysis, gain insight from across the UK and stay up to speed with the big moments. It'll be delivered straight to your inbox every weekday.Related topicsAndy BurnhamDonald Trump

Source: BBC Business
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