After Jackdaw approval, Labour must now seize £50bn North Sea prize with both hands – David Whitehouse

The approval of Jackdaw matters for our energy security and the North Sea’s future. But the real test is what happens next.

The £2.1 billion gas development east of Aberdeen could begin production within weeks. At peak, it’s expected to increase UK domestic gas production by 6 per cent, equivalent to the gas needed to heat 1.4 million homes. Its production emissions are estimated at around half the North Sea average.

In an uncertain world, producing more of the energy we need at home matters. Jackdaw will strengthen domestic supply, supporting British jobs and businesses rather than adding to our dependence on imports. The project has been through rigorous environmental scrutiny, including analysis of emissions when the gas is used.

High standards are essential, but workers and investors need confidence that projects meeting those standards can move forward. Uncertainty affects investment decisions.

READ MORE: Jackdaw: what does it actually mean for business, you and energy prices

The lessons of Grangemouth and Mossmorran

Andy Burnham has spoken about reindustrialising Britain. Jackdaw offers a chance to put that ambition into practice. Yet we cannot rebuild our industrial strength while allowing the skills, businesses and supply chains we already have to disappear.

Scotland knows what losing industrial capacity means. The closure of Grangemouth’s refinery and the ethylene plant at Mossmorran have affected workers, families and businesses beyond the sites themselves.

The circumstances differ, but both are reminders of what’s at stake when major employers close. Once skilled workers and specialist expertise are lost, rebuilding that capability is not easy.

That is why attention must now turn to Rosebank, west of Shetland, which still awaits consent. It represents around £8.7bn of investment. Together, Jackdaw and Rosebank are expected to support more than 3,500 jobs at peak construction, sustain around 880 during production and provide at least 125 apprenticeships.

For families across the north-east, Fife, Shetland, Orkney and beyond, these are opportunities for secure livelihoods. For young people, apprenticeships provide a route into skilled careers. Those same engineers and specialist firms will be needed to build offshore wind, carbon capture and hydrogen projects.

READ MORE: Douglas Alexander criticises SNP's 'incoherent' approach to North Sea after Jackdaw decision

Not about new oil exploration

Rosebank is not alone. Cambo, Tornado, Kyla and other developments are also awaiting decisions. Many sit within existing licences, making the question one of timely decisions rather than opening new areas for exploration.

Across existing licences, the industry has identified 111 opportunities that could unlock £50bn of private investment, bringing work to ports, manufacturers and engineering firms.

We must cut emissions and develop cleaner energy at pace. But oil and gas will remain part of Britain's energy mix for decades. We already import around 40 per cent of the energy we use, spending £84bn on imports last year. If domestic production falls faster than demand, we buy more from abroad, sending jobs, investment and tax revenues elsewhere.

Next week's Budget offers another chance to act. Replacing the current windfall tax in 2027, rather than 2030, with the proposed Oil and Gas Revenue Levy would retain higher taxes when prices spike while giving businesses greater certainty to invest in projects and jobs during periods of low prices.

Jackdaw is a welcome first step. If the UK government is serious about energy security and reindustrialisation, it must build on this decision by approving Rosebank, unlocking a longer project pipeline, and creating the tax policy necessary to sustain investment and support homegrown industries.

David Whitehouse is Offshore Energies UK’s chief executive