Andy Burnham's looming decision on new North Sea drilling could spell 'life or death' for the industry, he was warned on Sunday night.

The Prime Minister must soon choose whether or not to approve production from a large untapped oil field west of Shetland, as a public consultation on Rosebank closes today.

He also has to decide whether or not to grant a licence for the Jackdaw gas field, 150 miles east of Aberdeen, after a similar exercise ended last week.

It was reported last night that Mr Burnham was poised to give the green light to the Jackdaw field. 

The PM is leaning towards approving the project, although no formal decision has been made, sources said.

The insiders added that the future of the Rosebank development remained far less certain. 

While Jackdaw is primarily a gas project, Rosebank would produce both oil and gas.

Mr Burnham suggested last week that speeding up the extraction of the remaining fossil fuels from the North Sea could bridge the transition to clean energy.

He said: 'We won't be able to stop using oil and gas for some time, that's just a fact. 

'The question is whether we can accelerate use of it so that we pay for the transition, and one thing helps the other... whether that extraction can be the bridge to the clean energy future we need, and bring it forward.'

Last night Mr Burnham was warned by the Tories that failing to approve the two projects – which could support more than 3,500 jobs and generate £20billion for the economy – would push the oil and gas sector in the UK closer to extinction.

It comes after BP put its North Sea business up for sale, raising fresh fearsfor jobs. 

Shadow Scottish secretary Andrew Bowie said: 'Labour's decision on both Jackdaw and Rosebank could be the difference between life and death for an industry that has supported the UK for generations.

'The absurd North Sea energy policy of both Westminster and Holyrood governments risks bringing a premature end to our oil and gas sector as we know it.

'I am absolutely positive that the results of both consultations will send a clear message to Andy Burnham to stop the small talk and get Britain drilling again.

'Anything other than approving these fields will threaten our energy security, cost thousands of jobs, and move our world-leading oil and gas industry one step closer to extinction.'

The PM was also urged by the industry to acknowledge the fact that oil and gas still provides about 75 per cent of the country's energy.

David Whitehouse, chief executive of trade body Offshore Energies UK, said: 'If we do not produce this oil and gas here with lower emissions under one of the most tightly regulated regimes in the world, we do not end demand.

'It just means more imported oil and gas – often with a higher carbon footprint, while more jobs, taxes and industrial value are shifted overseas.'

However, campaign group Stop Climate Chaos Scotland told Mr Burnham and new Energy Secretary Miatta Fahnbulleh that approving the new drilling is 'not compatible with climate goals'.

Ms Fahnbulleh's predecessor, Ed Miliband, previously said that allowing further exploration of the Rosebank oil and gas field would be an act of 'climate vandalism'.

The Department for Energy Security and Net Zero said: 'The North Sea remains a vital national asset, supporting jobs, growth and the UK's energy security.'