Andy Burnham is reportedly preparing new North Sea oil and gas drilling policy alongside a possible move to bring Thames Water into public ownership, within days of becoming prime minister on 20 July 2026. Independent polling commissioned by Offshore Energies UK found 71% of people back domestic oil and gas production over relying on imports, though formal government confirmation of the plans is still pending.
TL;DR · LAST REVIEWED 20 July 2026
- Reported plans, not yet confirmed government policy: new North Sea licensing and a possible Thames Water public ownership move, both expected to be set out within days of Burnham taking office.
KEY FACTS
- Reports say new North Sea drilling policy could be announced within days of 20 July 2026
- 71% of polled respondents back domestic oil and gas production over imports (OEUK/Opinium)
- Thames Water public ownership reported as a separate option under consideration
- Neither policy formally confirmed by government at time of writing
What is reportedly being proposed for North Sea oil and gas?
Civil servants have reportedly been asked to draw up new North Sea energy policy that could be announced within Andy Burnham's first days as prime minister, according to Bloomberg reporting, against a backdrop of an existing restriction on new North Sea exploration licences under the outgoing government.
Industry body Offshore Energies UK has been lobbying for a policy reversal, publishing polling in which 71% of respondents said the UK should produce oil and gas in its own waters rather than import it, compared with 8% who said the source did not matter; the same polling found more support (49% to 24%) for granting new exploration licences than for maintaining the existing restriction.
These figures come from polling commissioned by an industry campaign group with a direct interest in the outcome, so they should be read as one input into the debate rather than a neutral measure of public opinion, and specific licensing decisions have not yet been confirmed by government at the time of writing.
What would Thames Water public ownership mean?
Bringing Thames Water into public ownership is reported as one option being considered by the incoming government, alongside the North Sea policy, though no formal announcement has been made and the practical and financial mechanics of any such move have not been set out.
Any move to public ownership would be a significant departure from the current regulated private-ownership model for English water companies, overseen by Ofwat, but the detail of what is being proposed is not yet public.
Other English water companies are already under financial and regulatory strain: Southern Water was recently fined £7.1m for illegal sewage discharges, South East Water has warned over its own funding runway to July 2027, and Welsh Water has this week begun a hosepipe ban covering 33,000 properties, giving some sense of the sector-wide pressure behind the Thames Water reports.
Two views on North Sea licensing
Industry groups frame new North Sea licences as improving energy security and reducing reliance on imports, while critics argue that the UK's continental shelf resource is already largely depleted and that new licences would make little practical difference to bills or supply.
Offshore Energies UK points to official projections showing several billion barrels of oil and gas still recoverable through to 2050. Environmental campaigners and some analysts counter that a large majority of UK North Sea oil and gas has already been extracted, and argue new drilling licences would take years to produce meaningful output while doing little to insulate UK consumers from global price swings, since oil and gas are traded on international markets regardless of where they are extracted. Both positions are contested.
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DISCLAIMER
This article is for general information only and is not financial, legal or immigration advice. Facts are sourced from the outlets and regulators listed below and were accurate at the time of writing; details of breaking or reported policy changes may be updated once formally confirmed.
Frequently asked questions
Has the North Sea licensing ban officially been reversed?
Not yet confirmed at the time of writing. Bloomberg reports the incoming government is preparing an announcement within days of Andy Burnham taking office on 20 July 2026, but no formal policy change has been published.
Is Thames Water being nationalised?
This is reported as one option under consideration by the incoming government, not a confirmed policy. No mechanism, timeline or funding structure has been made public.
Would more North Sea drilling lower UK energy bills?
This is disputed. Industry groups argue domestic production improves energy security, while critics note oil and gas are priced on international markets, meaning UK-extracted supply does not automatically translate into lower domestic bills.
Who regulates North Sea oil and gas licensing?
The North Sea Transition Authority, wholly owned by the Secretary of State for Energy Security and Net Zero, is the statutory regulator responsible for licensing decisions in UK waters.
Who regulates Thames Water and other English water companies?
Ofwat is the economic regulator for the water industry in England and Wales, and any change to Thames Water's ownership structure would need to work within, or change, that regulatory framework.
SOURCES
- Rigzone/Bloomberg, Burnham to Back North Sea Oil – accessed 20 July 2026
- Offshore Energies UK, polling release – accessed 20 July 2026
- North Sea Transition Authority – accessed 20 July 2026
- Ofwat – accessed 20 July 2026
