Key facts
- The UK government is debating whether to allow new drilling in the North Sea.
- Rosebank is a proposed oilfield with 300-500 million barrels of oil and 1% of UK gas demand.
- Jackdaw is a gasfield that could produce 6% of the UK's North Sea gas supply at peak.
- Shell holds the license for Jackdaw; Adura (a Shell and Equinor joint venture) and Ithaca Energy (a Delek Group subsidiary) have stakes in Rosebank.
- The UK government has banned new drilling licenses in the North Sea as part of its commitment to clean energy.
- New tax measures for the offshore sector are proposed, with a sliding scale tied to global wholesale energy prices.
The UK government is facing a critical decision on whether to approve new drilling in the North Sea, a move that pits the need for energy security against climate change commitments. Two specific sites, Rosebank and Jackdaw, are at the heart of the debate. The public consultation for the Jackdaw gasfield has closed, and the one for the Rosebank oilfield is scheduled to conclude soon.
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 a small amount of gas equivalent to 1% of current UK demand. Jackdaw, an estimated 150 miles east of Aberdeen, is a gasfield that could produce approximately 40,000 barrels of oil equivalent per day, potentially meeting 6% of the UK's North Sea gas supply at its peak and displacing 2% of UK gas imports over its 9- to 12-year lifespan.
The state owns all oil and gas under the seabed, issuing licenses for exploration and extraction. Shell holds the license for Jackdaw, while Rosebank is majority-owned by Adura, a joint venture between Shell and Norway's Equinor, with a minority stake held by Ithaca Energy, a subsidiary of Israel's Delek Group.
In line with its commitment to clean energy and net-zero targets, the UK government has confirmed a ban on new drilling licenses in the North Sea, making it the first major G7 oil producer to do so. The Treasury is also proposing tax reforms for the offshore sector, including a sliding scale tax tied to global wholesale energy prices, intended to provide investor certainty and manage the transition while protecting jobs.
These policy changes have drawn mixed reactions. Trade unions like GMB and Unite express concerns about job security and energy independence, warning of increased reliance on imports. Industry representatives, such as Offshore Energies UK, have welcomed the proposed tax reforms for creating a stable investment climate. Environmental groups, including Uplift and Greenpeace, have praised the ban on new licenses as a progressive step towards reducing fossil fuel reliance and a demonstration of UK leadership.