Key facts
- The UK government faces a decision on approving new oil and gas fields at Rosebank and Jackdaw.
- Rosebank is a major oilfield with an estimated 300-500m barrels of oil, while Jackdaw is a gasfield expected to produce 40,000 bpd.
- Campaigners argue that new drilling will not significantly lower energy bills or improve long-term security and will exacerbate climate change.
- Fossil fuel companies claim drilling will bring jobs and energy security, but these assertions are disputed by energy research centers.
- Labour's manifesto indicated a policy against new North Sea exploration licences, though existing ones would be honored.
The UK government is facing a significant decision regarding the approval of new oil and gas fields, specifically Rosebank and Jackdaw, with public consultations recently closed. This decision is framed as a critical test for the new administration's commitment to climate goals.
Rosebank, located 80 miles off the Shetland coast, is described as the UK's last major undeveloped oil site, potentially holding 300 to 500 million barrels of oil and some gas equivalent to 1% of current demand. Jackdaw, a gasfield 150 miles east of Aberdeen, could produce approximately 40,000 barrels of oil equivalent per day, potentially displacing 2% of UK gas imports over its 9- to 12-year lifespan.
Campaigners argue that approving these fields is irresponsible, citing that new drilling will not significantly reduce energy bills or enhance long-term energy security, and will contribute to carbon emissions. They point to the UK Energy Research Centre's assessment that claims of energy resilience from North Sea drilling are a 'delusion'. Furthermore, the job creation figures are disputed, with industry job losses being substantial in recent years.
Fossil fuel companies, including Shell, Equinor, and Ithaca Energy (a subsidiary of Delek Group), which hold licences or stakes in these fields, promote the projects based on job creation and energy security. However, the extracted oil and gas are sold on international markets, meaning UK residents are unlikely to see direct price benefits. Tax revenues are also expected to be limited, with companies like Shell and Equinor having reported negative or low UK tax figures previously.
Burning the resources from Rosebank alone is estimated to produce about 250 million tonnes of CO2 over its lifetime. Despite these concerns, the fields were previously approved under Conservative governments, though these permits were later invalidated by a court following legal challenges from Greenpeace and Uplift.
Labour's 2024 manifesto stated a policy against new North Sea exploration licences, but existing ones would be honored. Insiders suggest a compromise may be reached, potentially approving only Jackdaw due to its lower carbon intensity compared to oil and its ability to connect to existing infrastructure, allowing for quicker development.