IMO Blair is a master of realpolitik. The idea that being pragmatic in terms of policy in the short term will gain you power that can be used as a basis to shape ideology in the long term. If you don't have the power, you don't get to shape the ideology.
He did the same in the 1997 election, stole the more acceptable (to his party) Tory policy and made it his own. This shifted the Tories to the right and away from the middle ground you need to capture in order to win elections.
The downside here is that he didn't really do much to shape the ideology. There was no significant repeal of some of Thatchers policies that if left to run long term would lead to negative consequences. For example financial deregulation and social housing.
Seems to me here he is proposing the same thing. Take the middle ground by stealing some of Reforms more politically acceptable policies, leaving them with the less acceptable ones. For example oil exploration.
Will this approach work and the answer is this time I don't know. When he did it last it was about taking Tory policy and forcing them away from the middle ground, but this time Labour are losing votes to the left (the greens) as well. The war on two fronts means that any move to the right to gain votes might lead to a loss of votes to the left. Careful balance is required, and this is without consideration of the more idealogical components of the Labour left that will be unwilling to accept pragmatism in exchange for power.
Not sure it is going to work this time.