Offshore Energies UK (OEUK) is urging the UK Government to approve the Jackdaw and Rosebank oil and gas projects in the North Sea, calling it a potential "powerful reset" for the sector under Andy Burnham's new government.
OEUK Chief Executive Makes Case for Projects
David Whitehouse, chief executive of OEUK, said there is an "overwhelming" case for both projects to proceed, despite environmental objections. Reports suggest the UK Government could approve them as early as August, which Whitehouse described as a "powerful reset for the sector that shows that the Burnham Government is supporting British industry."
Whitehouse told the Press Association: "What would be really significant, and what we look for now, is for this UK Government to say while we use oil and gas we back our own production, that is what we want to hear. That would be significant, and what would flow from that I believe is positive decisions about Jackdaw and Rosebank."
Environmental and Economic Arguments
Speaking about the projects in Scottish waters, Whitehouse said: "The case to support them is overwhelming, both from an environmental perspective, but also the wider social impacts of the fact that they will support jobs and value in the economy." Consultations on Jackdaw and Rosebank run until August 10 and August 17 respectively, after which the Offshore Petroleum Regulator for Environment and Decommissioning (Opred) will make a recommendation.
If approved, work could start "very quickly," Whitehouse added, noting that "considerable amounts of money and considerable activity" have already been invested, and "the Jackdaw platform itself is installed, the wells are drilled."
Climate Campaigners Oppose Developments
Climate campaigners continue to object to the developments, but Whitehouse said both projects and "a significant number of additional projects" could help the UK meet more of its own oil and gas needs without relying on imports. He highlighted that Jackdaw could produce gas needed for winter and should be approved ahead of that period.
New Energy Secretary Miatta Fahnbulleh, who met Whitehouse in Aberdeen on Thursday, has indicated a "pragmatic approach" despite the Labour government's previous opposition to new oil and gas developments, in line with its 2024 manifesto.
Government's Stance and Potential Consequences
Whitehouse noted that Burnham "speaks a lot about the importance of place, and the importance of industry, reindustrialisation," adding that this narrative lends itself to supporting UK industries. While acknowledging the need for renewable energy and climate action, he argued that the UK will use oil and gas "for decades to come" and should support domestic production over imports.
He warned that refusing consent for Jackdaw and Rosebank would have "truly significant" consequences: "It would send a signal that the UK is choosing not to support its own industries... that jobs of people up and down the country are not important... that the value in our economy, the taxes that those projects would pay are not important... and that actually the UK doesn't want to control its own emissions." He added that it would impact a £50 billion pipeline of projects.
