Labour MPs split over Rosebank oil field as government decision nears

A significant faction of Labour MPs has called on the government to reject the Rosebank oil field, arguing that approval would be incompatible with the United Kingdom’s climate commitments. The intervention highlights a deepening internal division within the ruling party as the formal decision on the project, located 80 miles north-west of Shetland, is expected in the coming weeks. While some ministers and backbenchers advocate for production to support energy security and economic stability, others contend that the project fails to address the cost of living crisis and undermines net zero targets.

Prime Minister Andy Burnham stated on Wednesday that a decision would be taken in due course, while Energy Secretary Miatta Fahnbulleh emphasised that the affordability of energy bills remains her overriding objective. The debate in Westminster Hall, organised by Green MP Carla Denyer, saw more than a dozen Labour MPs voice concerns about approving the field. Abtisam Mohamed, the MP for Sheffield Central, argued that Rosebank fails on every test, noting that it will not benefit taxpayers who will shoulder the majority of development costs. She further stated that the project will not strengthen energy security, as most of the oil will be sold on international markets, nor will it reduce energy bills for constituents who remain exposed to volatile fossil fuel prices.

Richard Burgon, a former frontbencher, described the project as dangerous to pretend otherwise regarding its compatibility with climate targets. The UK is committed to reaching net zero by 2050 and limiting global warming to no more than 1.5C above pre-industrial levels. Anna Gelderd, another Labour MP, warned that the country is in an unprecedented era where energy security is vital, but she maintained that Rosebank fails to protect jobs and seize economic opportunities. Julia Buckley, representing Shrewsbury, cited constituent opposition and urged the Energy Secretary to reject the oil licence in favour of renewables, stating that fossil fuels belong in the past.

Conversely, supportive Labour MPs pointed to the economic benefits and the necessity of domestic production. Al Carns, a recently departed veterans minister, warned that Britain would continue to need fossil fuels for decades and that refusing to produce them domestically would simply increase reliance on imports, which carry their own environmental costs. Jonathan Brash, the MP for Hartlepool, stressed the benefits of approving Rosebank for British jobs, representing a constituency with ties to the oil and gas industry. Bill Esterson, chair of the Energy Security and Net Zero Committee, told BBC Radio 5 Live that the economics suggest the project should proceed, citing an element of energy security.

The legal and political context of the decision is complex. The UK government has insisted that Rosebank is a quasi-judicial decision, formally resting with the Energy Secretary. Licences for both the Jackdaw gas field and Rosebank were granted by the previous Conservative government in 2022 and 2023 respectively. However, the Court of Session in Edinburgh ruled last year that the government had made the approvals unlawfully, leaving the current Labour government to make a fresh decision. Labour’s 2024 manifesto pledged not to issue new licences to explore new fields, a stance that contrasts with the current deliberations.

Energy minister Michael Shanks told the debate that the government would take a pragmatic approach to the clean energy transition. He stated that the government is not one that turns off the taps, but nor can it justifiably drill every last drop. He added that the government will not make decisions incompatible with its climate obligations. Meanwhile, Conservative leader Kemi Badenoch sought to highlight Labour divisions on the issue during Prime Minister’s Questions on Wednesday. It is understood that some Labour backbenchers have organised a letter opposing Rosebank, intended for the Prime Minister, which more than 60 out of about 400 Labour MPs have indicated they support.