LONDON — The appointment of Miatta Fahnbulleh as the United Kingdom's energy secretary has reignited debate over the future of North Sea oil and gas extraction. Fahnbulleh, a Labour MP for the London constituency of Peckham since July 2024, has been described by The Guardian as a “radical economist” who is outspoken about the climate crisis. She now holds the reins at the Department for Energy Security and Net Zero (DESNZ), a position that places her at the centre of a contentious policy crossroads.
Under former Prime Minister Keir Starmer, the UK government ended exploration licensing in the North Sea, preventing companies from seeking new oil and gas reserves in untapped areas. However, existing projects remain unaffected, and two major fields off the coast of Scotland — Rosebank and Jackdaw — approved under the previous Conservative government in 2022 and 2023, were overturned in 2025 after a legal challenge. Speculation has swirled that Prime Minister Andy Burnham, who succeeded Starmer, might approve new drilling, particularly through so-called “tieback” arrangements that connect new wells to existing infrastructure without technically breaching the manifesto ban.
Burnham’s deputy, Lucy Powell, sought to calm environmentalists by reaffirming the party’s commitment to its manifesto. “We’ve been clear with tiebacks and other measures that we want to see North Sea gas and oil continue to thrive, continue to contribute to that energy mix, but resolute in our mission that energy security and lower bills will only come by us not continuing to rely on fossil fuels but building the cheaper, renewable energy of the future as well,” she said.
Fahnbulleh’s Background and the Green New Deal
Fahnbulleh brings a distinctly progressive economic perspective to the role. She studied philosophy, politics, and economics at the University of Oxford and earned a PhD in economic development from the London School of Economics. From 2017 to 2023, she served as Chief Executive of the New Economics Foundation, a think-tank that has called for a complete end to new drilling in the North Sea. The foundation also coined the term “Green New Deal,” a policy framework aimed at tackling the 2008 financial crisis, climate degradation, and rising energy bills. Sources close to Fahnbulleh told The Guardian that she has the intellect and skills to challenge the narrative that more fossil fuel extraction will deliver energy independence or lower household costs.
Environmental organisations are already pressing her to “hold the line against harmful fossil fuel expansion.” The question is whether she can resist political and economic pressures, including from external actors. Earlier this week, US President Donald Trump took to his Truth Social platform to claim he had discussed North Sea oil with Burnham. Trump has consistently criticised the UK’s ban on new exploration licences, previously urging Starmer to “drill baby, drill.”
When Euronews Earth asked DESNZ whether new drilling licences would be permitted or if tiebacks would be used to circumvent the manifesto, a government spokesperson sidestepped a direct answer. “The North Sea remains a vital national asset, supporting jobs, growth and the UK's energy security,” the spokesperson said. “We are clear that oil and gas will continue to play an important role in our energy system for decades to come, alongside renewables, nuclear and other low-carbon technologies. Our focus is on providing stability and ensuring the North Sea continues to make a strong contribution to the UK's economy and energy security.”
The Economics of Drilling vs. Renewables
Much of the political support for expanding North Sea drilling rests on the assumption that it will lower energy bills. Yet a 2026 analysis from the University of Oxford paints a starkly different picture. The study found that a UK fully powered by renewables could save households up to £441 (approximately €517) per year on energy bills. In contrast, maximising oil and gas extraction from the North Sea would yield only £16 (€19) to £82 (€95) in annual household savings — and even that depends on tax revenues being redistributed to consumers.
Dr Anupam Sen, the study’s co-author, dismissed the argument for draining the North Sea as “sheer fantasy.” “We show that regardless of the remaining lifetime of North Sea oil and gas, a ‘drill baby drill’ approach to extraction would actually cost households more money versus continuing on our path to clean energy,” he said. Co-author Cassandra Etter-Wenzel added that meaningful savings from renewables require upfront investment, such as installing heat pumps. The analysis used oil and gas prices from January 2026, before fluctuations caused by the Iran war, which researchers say are representative of realistic medium-to-long-term prices.
Moreover, oil and gas prices are set on global markets, not discounted for British consumers. Gas extracted from UK waters can be exported to the highest bidder, meaning increased domestic production does not guarantee lower costs. Experts also warn that North Sea reserves are finite and risk depletion by around 2040, while savings from clean energy would recur annually indefinitely. This dynamic is particularly relevant as Europe grapples with energy security amid geopolitical tensions, such as the ongoing war in Ukraine and its impact on energy and fertiliser costs, as highlighted in a recent UN warning.
Fahnbulleh’s tenure will test whether the UK can reconcile its net-zero ambitions with the immediate demands of energy security and economic stability. Her decisions on Rosebank, Jackdaw, and the broader licensing regime will send a clear signal to investors, environmentalists, and European partners about the direction of British energy policy. As the continent watches, the outcome could influence similar debates in other North Sea nations, including Norway and the Netherlands.
