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Political tensions within the Labour Party are intensifying regarding the future of the Rosebank oil field, with Scottish Labour leader Michael Marra intervening in the debate. Marra is urging Energy Secretary Miatta Fahnbulleh to approve the development plans for the site located in the North Atlantic.
Political Shifts on Energy Policy
Environmental campaigners have long opposed drilling at the UK’s largest untapped oil field, situated 80 miles north-west of Shetland. When the Labour Party came to power in 2024, its manifesto included a pledge to block any new oil and gas drilling in the North Sea. However, legal challenges placed the future of both the Jackdaw and Rosebank developments into the hands of then-Energy Secretary Ed Miliband.
Offshore industry figures initially doubted approvals would be granted due to Miliband’s focus on renewables and close ties to Prime Minister Keir Starmer. Following global conflicts that disrupted energy supplies and worsened the cost of living crisis, a new government under Andy Burnham took office with greater flexibility on energy issues. Although Jackdaw and Rosebank involve adjudicating existing licences rather than issuing new ones, the internal Labour stance has noticeably shifted.
Recent Approvals and Cabinet Divisions
Last week, Energy Secretary Miatta Fahnbulleh approved production on the Jackdaw gas field, stating the project will support gas supplies, protect hundreds of jobs, and contribute £2.9bn to the economy over its 11-year lifespan. Environmentalists criticized the decision, arguing it harms climate goals and provides no meaningful benefit to energy security. While the UK government maintains that these choices follow a strict regulatory and quasi-judicial process, political lobbying has intensified around Rosebank.
Reports emerged following the Jackdaw approval suggesting Fahnbulleh might reject Rosebank, while subsequent reports ahead of the Budget indicated that Chancellor John Healey supports approval. Fahnbulleh has maintained that the final decision rests solely with her, describing it as a regulatory process rather than a policy matter.
Arguments for Investment
As reported by BBC News, Scottish Labour leader Michael Marra traveled to Westminster to meet with both Healey and Fahnbulleh ahead of the Budget. Marra advocates for the Rosebank project based on its economic benefits, stating to BBC News, “I supported Jackdaw and Rosebank because I think they’re really crucial for the Scottish economy, for employment, and for the public finances as well.” He added that the Jackdaw approval provided a significant boost to morale and investment in north-east Scotland.
Marra is also advocating for higher bank levies in the upcoming Budget to help fund relief for the cost of living crisis, a proposal expected to be approved. The final outcome regarding the Rosebank oil field remains uncertain as cabinet discussions continue.
