New UK energy chief Fahnbulleh faces North Sea drilling test

Prime Minister Andy Burnham has named Miatta Fahnbulleh as the UK’s new energy secretary, handing control of the North Sea’s future to an economist who has previously called for an end to new drilling in the basin. The appointment follows intense speculation that Burnham was preparing to approve new oil and gas projects, fuelled by public pressure from US President Donald Trump to reverse the UK’s exploration ban.

Under former Prime Minister Keir Starmer, the UK ended licensing for new exploration in untapped North Sea areas, though existing projects were allowed to continue. Two major fields, Rosebank and Jackdaw, were approved by the previous Conservative government but overturned in 2025 following a legal challenge. Deputy Labour leader Lucy Powell insisted Burnham will honour the party's manifesto, but highlighted "tiebacks" as a mechanism to allow new drilling close to existing sites without technically breaking the ban.

Fahnbulleh’s professional background suggests she may resist such workarounds. Described as a "radical economist" who is "outspoken about the climate crisis," she led the New Economics Foundation from 2017 to 2023, a think-tank that advocated a total end to new basin drilling and coined the term "Green new deal." Sources indicate she is prepared to challenge the assumption that expanding fossil fuel extraction will lower household bills or deliver true energy independence.

That assumption is not supported by the underlying economics. A 2026 University of Oxford analysis found that maximising North Sea extraction would only save households £16 to £82 annually, and only if tax revenues were directly redistributed. By contrast, a fully renewable energy system could save households up to £441 a year.

Dr Anupam Sen, a co-author of the study, called the argument that draining the North Sea slashes energy bills "sheer fantasy." He noted that a continued reliance on fossil fuels would actually cost consumers more than transitioning to clean energy. Co-author Cassandra Etter-Wenzel added that while renewable infrastructure requires upfront investment, such as purchasing heat pumps, those savings would recur indefinitely.

The reality of global commodity markets further undermines the case for expanded domestic production. UK-extracted gas is sold to the highest global bidder rather than discounted for domestic consumers, meaning increased output offers little price relief at home. Furthermore, the North Sea is a finite resource that experts warn could be depleted by around 2040.