Political battle intensifies within Labour over Rosebank oil field

Image source, PA Media

Image caption,

Scottish Secretary Douglas Alexander, Energy Secretary Miatta Fahnbulleh and Chancellor John Healey visited the St Fergus Gas Terminal on Wednesday

ByParis Gourtsoyannis

Westminster correspondent, BBC Scotland

Scottish Labour leader Michael Marra is wading into the political battle which is intensifying over the Rosebank oil field.

He is making a direct appeal to Energy Secretary Miatta Fahnbulleh to approve the plans to allow production to begin in the North Atlantic.

Environmentalists have long campaigned against the proposals for drilling in the UK's largest untapped oil field, 80 miles north-west of Shetland.

That the debate is now taking place within the Labour Party is a sign of the UK's recent journey on the politics of energy.

When Labour came to power in 2024, it was with a manifesto pledge not to allow any new drilling for oil and gas in the North Sea.

Image caption,

Rosebank is the UK's largest untapped oil field

A legal challenge thrust the future of the Jackdaw and Rosebank developments into the hands of the then-Energy Secretary, Ed Miliband.

At that point, senior offshore industry figures didn't hold out much hope of getting the go-ahead, given Miliband's deep commitment to renewable energy and his close political ties to Prime Minister Keir Starmer.

All that was before the outbreak of the war between the US, Israel and Iran, which closed the Strait of Hormuz and made an ongoing cost of living crisis even worse.

A new government under Andy Burnham entered 10 Downing Street with greater political freedom on the issue - and a new energy secretary to make the decisions.

Strictly speaking, Jackdaw and Rosebank aren't applications for new drilling licences, just the adjudication of existing ones.

But in political terms, the change of tone within Labour has been clear.

What had been an article of faith on energy has become something much more flexible.

It's a shift that's also plain to see within the SNP, with the Scottish government that once favoured a presumption against new oil and gas drilling now issuing a careful welcome to the Jackdaw announcement.

Last week, Energy Secretary Miatta Fahnbulleh announced that production could begin on the Jackdaw gas field.

She said that over its expected 11-year lifespan, the project would support the UK's gas supply, protect hundreds of jobs and add £2.9bn to the economy.

Image source, EPA

Image caption,

Campaigners have called for the Rosebank plans to be rejected

Environmentalists said the decision would hamper efforts to tackle climate change and make "no meaningful difference" to UK energy security.

The UK government has always insisted that these decisions are part of a quasi-judicial process, judged on strict environmental criteria, not politics.

But as attention turns to Rosebank, the politics are seeping in.

Within hours of Jackdaw being granted approval, a briefing campaign began suggesting that Fahnbulleh was "minded" to reject Rosebank.

Now, in the week of the Budget, reports have suggested that Chancellor John Healey is in favour of approval.

The timeline of Jackdaw and Rosebank

Neither cabinet minister has given their view publicly, of course.

Fahnbulleh has insisted that the decision is "a regulatory process not a policy process," adding: "It sits heavy for such a big controversial decision because in the end only I can make it."

Even though she isn't looking for advice, the Scottish Labour leader is willing to offer it.

Marra is in Westminster meeting both Healey and Fahnbulleh in the run-up to the Budget on Wednesday.

Marra believes that on jobs and investment, the case for Rosebank is clear.

Image source, PA Media

Image caption,

Michael Marra will be meeting both the chancellor and the energy secretary

"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 told me.

"We need to make sure that we're a country that people feel they can invest in.

"You've seen what's happened with Jackdaw in recent days - a real boost to the morale and the investment climate in the north east of Scotland."

He's also arguing for increased levies on banks in the Budget, to contribute towards the cost of help on the cost of living.

That second request looks set to be granted - which is likely why Marra feels able to make it publicly.

On Rosebank, we still can't say for sure how things will go.

But the fact this debate is even being had is itself a symbol of our new energy reality.