The Jackdaw gas field, located around 150 miles off the coast of Aberdeen, will begin supplying UK homes and businesses within weeks, according to an announcement by Andy Burnham. The development is expected to boost domestic gas production by about six per cent at its peak, supporting the UK's gas supply for up to 11 years.
The UK Government confirmed the go-ahead for the field, citing recent events in the Middle East that have triggered global energy shocks and pushed up bills for families. The Prime Minister said the decision would "protect hundreds of jobs and help keep millions of homes warm this winter".
Government's pragmatic approach to North Sea
Burnham said: "At a time when people are really struggling, it's right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help." He emphasised the commitment to renewable energy and net zero by 2050, but noted that oil and gas will still be needed for decades to come.
"We're also establishing a new Energy Wealth Fund to invest in renewable energy, support the green transition and help reduce energy bills over the long-term," Burnham added. The fund will use tax revenues from North Sea oil and gas to invest in renewable and low carbon energy projects.
Energy Wealth Fund announced
John Healey, the Chancellor, will later announce the establishment of the Energy Wealth Fund, which will start with an initial £2 billion injection of funding. Future revenues from the North Sea will flow into the fund over time, supporting the green transition and helping to bring down bills.
