North Sea: UK Government set to approve Jackdaw oilfield
Reports suggest the Jackdaw oilfield will be given the green light later this month.
The UK Government is set to approve the controversial Jackdaw oilfield off the coast of Aberdeen.
Government and industry sources are reporting that approval will be given in mid-September, just weeks after a consultation on developing the North Sea oilfield closed. However, there is still currently no indication on whether the Rosebank oilfield will be approved.
This comes after new Prime Minister Andy Burnham said there needs to be a “pragmatic approach” towards domestic oil and gas, and said: “We won’t be able to stop using oil and gas for some time. That’s just a fact.
“The question is whether we can accelerate use of it so that we pay for the transition.”
Both Jackdaw and Rosebank had previously been approved by the former Conservative government, but this was delayed after a legal challenge by environmental campaigners in the Court of Session.
Last year the Court of Session ruled that both oilfields have been unlawfully approved because the government had failed to take into account the climate impact of extracting oil and gas from these fields. The judge said more detailed climate assessments needed to be published.
Jackdaw is operated by Adura, a joint venture between energy giants Shell and Norwegian state company Equinor. Adura estimates Jackdaw could produce 35.8 million tonnes of carbon over its lifetime, which is the equivalent of 90 per cent of Scotland’s emissions for 2023.
Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said approving Jackdaw would be a “hugely important vote of confidence” in the North Sea which would protect jobs, strengthen energy security and ensure more domestic oil and gas is used.
He said: “But Jackdaw cannot be the end of the story - the same urgency must now be applied to Rosebank, another major project capable of supporting thousands of jobs, billions of pounds of economic activity and significant tax revenues for the Treasury.
“Together these projects represent 10 per cent of our future gas supply at a point where we face a critical gas shortage.
“The Prime Minister has rightly called for a pragmatic approach to domestic oil and gas. Swift approval of both Jackdaw and Rosebank would put those words into action, but we also need the Government to address the punitive tax regime which is driving investment and jobs out of the North Sea.
“That means ending the energy profits levy at the start of the new tax year and moving to the permanent, price-based oil and gas revenue levy. Taken together, those decisions would send a powerful signal that Britain is serious about backing its energy workers, its industrial base and its own energy security.”
Shadow Energy Secretary Andrew Bowie said: “Approving Jackdaw gasfield is just common sense and should have been given the green light years ago.
“Labour’s ban on new oil and gas licences has been disastrous for the north-east and cost thousands of workers their jobs as they continue to dither over a decision.
“That has been compounded by the SNP’s hostility towards the sector and John Swinney’s continued presumption against any new oil and gas projects.
“Andy Burnham must finally give this project approval and do the same with the Rosebank oilfield.”
He said it was “absolute madness” for the economy and the UK’s energy security to use imported oil and gas rather than domestic North Sea resources.
However climate campaigners say the UK Government must not “cave in to fossil fuel company pressure”, as burning fossil fuels from Jackdaw will worsen the climate emergency.
Caroline Rance, head of campaigns at Friends of the Earth Scotland, said: “New fossil fuels means deadly new climate disasters like the devastating floods in Nepal or the extreme heatwaves that have killed nearly 3,000 people in the UK this summer.
“It is terrifying that the UK Government is considering caving to pressure from oil and gas lobbyists, and listening to their lies rather than looking at the evidence and prioritising our collective safety.
“New fossil fuels can never be compatible with our climate commitments. Both Jackdaw and Rosebank must be rejected once and for all.”
She also argues that drilling new oilfields will not help UK households as “any gas extracted belongs to Shell and Equinor who will sell it at the highest international price and boost their obscene profits”.
Ms Rance added: “It is disgraceful that the government is allowing our energy future to be determined by the same companies who are causing both record-breaking temperatures and soaring energy bills.
“Drilling Jackdaw risks further undermining the transition to renewable energy whilst only providing 27 long-term jobs. The only way we can provide real security for households and workers is by building an energy system that is powered by renewables, brings down bills, and is run in the public interest.”
Tessa Khan, executive director of Uplift, added: “More North Sea drilling will do nothing to cut our energy bills and make no meaningful difference to UK energy supply.
“After 50 years of drilling, the UK has now burned most of its gas and the majority of what’s left in the basin is oil, which is largely exported.
“Jackdaw, a relatively small gasfield, would - optimistically and assuming none of its gas is exported - provide just 2 per cent of UK gas demand over its roughly 10 year lifetime.
“A new oilfield on the scale of Rosebank, which is overwhelmingly oil for export, is fundamentally incompatible with safe climate limits and the UK’s international commitments.
“The science is clear that the world already has far more oil and gas than can ever be safely burned if we are to limit warming.”
The UK Department for Energy Security and Net Zero says it does not comment on speculation, but a spokesman said: “The North Sea remains a vital national asset and oil and gas will continue to play an important role in our energy system for decades to come - alongside transitioning to clean power to protect jobs and tackle the climate crisis.
“Any decisions will take into account all relevant evidence, including environmental assessments and public representations received during the consultation process.”
Comments
Want to join the conversation? Please or to comment on this article.