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Prime Minister urged to drop ban on oil and gas drilling as BP puts North Sea business up for sale
BP has put its North Sea oil and gas business up for sale, ending six decades of production in UK waters and placing 1,100 jobs in question. Critics have urged Prime Minister Andy Burnham to reverse Labour’s ban on new drilling licences, arguing that the move highlights pressure on the industry and risks to energy-sector employment.
The company said its North Sea division would be better placed within another business. Aberdeen and Grampian Chamber of Commerce blamed policy uncertainty, punitive taxation and conflicting government signals, while Conservative leader Kemi Badenoch called for new oil and gas licences to be allowed.
In short
- BP is selling its North Sea business after 60 years.
- The division employs 1,100 people.
- Critics blame taxes, uncertainty and the drilling ban.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Those opposing the drilling ban argue that the UK cannot unilaterally halt climate change through domestic production restrictions whilst global demand for energy remains high and other nations continue exploitation; they contend that shutting out British industry merely relocates emissions to less regulated jurisdictions whilst sacrificing economic security, skilled employment and tax revenues the North Sea generates. They maintain that an abrupt transition risks energy affordability crises for consumers and destabilises regional economies when renewables cannot yet reliably replace current capacity, making managed rather than prohibited licensing more prudent for workers and communities.
The case against
Supporters of the drilling ban argue that permitting new fossil fuel extraction is incompatible with the UK's binding net-zero commitments and climate obligations; they maintain that continued investment in oil and gas infrastructure locks in decades of future carbon emissions and diverts capital from renewable alternatives that must eventually replace fossil fuels regardless. They contend that delaying this transition prolongs economic vulnerability to volatile global energy markets and creates stranded assets, whilst true energy security derives from renewable independence and climate leadership rather than justifying new drilling through global comparison.
Explained simply
The North Sea has been a major source of oil and gas for the UK since production began in the 1960s. The industry supports jobs and businesses, particularly in north-east Scotland, and provides some of the energy used in the UK.
The UK government controls whether companies can receive licences to explore for and develop new oil and gas fields. Labour has stopped issuing new licences, while allowing some existing projects to continue; supporters of drilling argue that this affects investment and jobs, while opponents point to the need to reduce emissions and move towards cleaner energy.
BP is one of the largest energy companies operating in the UK, and its North Sea business is part of a mature industry facing changing costs, taxes and energy policies. The debate matters because decisions about future production can affect employment, domestic energy supply and the UK’s climate goals.