Key facts
- Energy Secretary Andy Burnham promised a "pragmatic approach" to North Sea drilling.
- The UK government is considering decisions on the Jackdaw and Rosebank North Sea projects.
- These two fields could produce nearly a billion barrels of oil and fulfill over 6% of UK gas demand.
- Industry figures are optimistic about potential government support for North Sea projects.
- Global energy supplies have been disrupted by conflicts in the Middle East and Ukraine.
- European natural gas prices have risen over 130% this year, and Brent crude is up over two-thirds.
Andy Burnham, the UK's energy secretary, has pledged a "pragmatic approach" to North Sea oil and gas development, signaling a potential shift in government policy towards the industry. This comes as energy executives express a desire for concrete progress beyond positive discussions and overtures.
Burnham's remarks at the Labour conference echoed comments made by Energy Secretary Miatta Fanbulleh, who visited Aberdeen early in her tenure and acknowledged that oil and gas would remain a significant part of the UK's energy mix for decades. The visit itself was seen by industry leaders as a positive sign, contrasting with the perceived cold shoulder from the previous government.
Industry figures remain optimistic that decisions on key projects like the Jackdaw and Rosebank fields are imminent. These two developments, owned by a joint venture between Equinor and Shell, could yield nearly a billion barrels of oil and meet over six percent of the UK's gas demand. A decision on these projects was expected in early September, ahead of the party conference season.
The geopolitical landscape, marked by the ongoing war in the Middle East and Russia's invasion of Ukraine, has highlighted the importance of secure domestic energy supplies. European natural gas prices have surged over 130% this year, and Brent crude has risen more than two-thirds, prompting countries like Norway to adjust production plans and the US to consider restricting diesel exports.
Offshore Energies UK (OEUK) argues that the current context makes decisive action on North Sea projects logical and pressing. Beyond Jackdaw and Rosebank, over 100 other licensed projects are ready for extraction, contingent on a consistent tax regime and streamlined regulation. The Department of Energy Security and Net Zero has stated that the North Sea is a "vital asset" and that decisions on Adura's fields will consider all relevant evidence.