Other options for Burnham include scrapping the Energy Profits Levy (EPL), or windfall tax. This was introduced when prices spiked at the start of Russia’s invasion of Ukraine.
It has a headline rate of 78%, which is taken whether oil and gas prices are high or low.
The industry says it makes the North Sea one of the least favourable in the world for investors and there is strong evidence that investment has certainly dried up in those years.
It’s due to be replaced in 2030 by another windfall tax, which operators like more because it’s only triggered when prices are high and falls back when they are low.
While politicians have been arguing furiously over Jackdaw, Rosebank, and new exploration licences, it’s the EPL which the industry would most like the new prime minister to focus on.
It’s also the one which is likely to face the least opposition from environmentalists.
It does fit in with one of Andy Burnham’s missions of reindustrialisation by encouraging the kind of investment that brings and secures jobs.
But it’s the least politically sexy option to take.
So what he does there may help define whether the new PM is about grabbing headlines or making genuine moves to stimulate the economy.
