Andy Burnham should dangle the promise of more North Sea drilling as part of his upcoming talks with the European Union, according to a fresh report that warned a failure to tap into the region’s reserves would leave the continent exposed to future diesel shocks.

Researchers from advisory firm PF Global urged the Prime Minister to tout the UK’s oil and gas industry in this month’s EU reset talks, arguing it would help bolster his negotiating position and contribute to Europe’s “shared resilience”.

“Norway, outside of the EU, has built much of its relationship with Europe on its role as a reliable supplier,” the paper, titled A UK-European Oil System, said. “The UK can make a comparable case, presenting UKCS [UK Continental Shelf] oil production as a contribution to shared resilience ahead of the UK-EU summit in November 2026. That case is weakened if the UK is seen to be running down its own production before getting to the table.”

Operations at European refineries have been plunged into disarray after the Middle East conflict sent oil prices soaring and strangled oil and gas supplies. On top of supply concerns, refiners’ margins have been further squeezed by the spiralling cost of commissioning tankers, leading some to slash output until the industry’s fundamentals improve.

The supply-starved market prompted world leaders to release more than 100m barrels of diesel onto the global market last month and the European Commission to launch a fresh push to improve its refining capacity.

North Sea one of few energy levers in Burnham’s control

Much of the continent’s recent issues stem from the exorbitant premiums many are paying to ship crude long distances across the Atlantic or through war-affected shipping routes.

Authors of the PF Global report, which was commissioned by energy firm Adura, argued that a fresh wave of North Sea drilling would help alleviate that supply pressure and bolster European energy security for any future shock. They added that approving Rosebank – a Shetland oilfield containing roughly 400m barrels of oil – was the most immediate way to ease pressure on Europe’s energy market.

“Few levers are available to the UK in a supply crisis,” they said. “Withholding consent for Rosebank would relinquish one from that limited supply unnecessarily. Developing it, and sustaining the shelf behind it, would strengthen the security of the UK and European neighbours alike.”

A decision on whether to green-light Rosebank is believed to be on energy secretary Miatta Fahnbulleh’s in-tray after a lengthy consultation process. Adura owns both Rosebank and Jackdaw, the gasfield which Fahnbulleh rubber-stamped last month.

The intervention comes just weeks before the eagerly anticipated UK-EU summit, where Burnham is expected to push for closer alignment with the trading bloc. Announcements are expected on youth mobility, agriculture and emissions in what the Prime Minister hopes will be the first of several deals that bring Britain closer to its largest trading partner.

A spokeswoman for the Department for Energy Security and Net Zero, said: “The North Sea remains a vital national asset and oil and gas will continue to play an important role in our energy system for decades to come – alongside transitioning to clean power to protect jobs and tackle the climate crisis.”