Energy Secretary Ed Miliband is expected to approve the Shell-operated Jackdaw gas field in the North Sea, a project that could supply gas to around one million UK homes. The decision, which would mark the first major North Sea oil and gas development in nearly a decade, comes amid efforts to ease price pressures following the effective closure of the Strait of Hormuz by Iran.
The Jackdaw field, located approximately 150 miles off Aberdeen, could begin production within months, with most infrastructure already in place. Industry estimates suggest it could supply roughly 6 per cent of the UK's future gas output. The project is privately funded but subject to UK approval and taxation.
The expected approval represents a significant policy shift for Miliband, who previously stated that major fossil fuel projects were incompatible with the UK's climate goals. Whitehall sources indicate that the decision follows a reassessment of the project's compatibility with carbon targets under updated regulatory criteria. However, a source close to Miliband said he is not yet decided as he lacks full information.
The move has exposed deepening political divisions. Chancellor Rachel Reeves has signalled support for increased domestic drilling on economic and energy security grounds, while in Scotland, First Minister John Swinney has softened the SNP's opposition to new drilling. The decision is expected to reignite tensions with the Scottish Greens, who warn it undermines climate commitments.
Government sources believe the decision may be delayed until after Scotland's election on 7 May. Critics argue the impact on household bills will be limited, with climate campaigners warning the field would make only a marginal difference to overall UK gas supply. Environmental groups advocate for investment in renewables, insulation, and heat pumps instead.
The project is projected to yield hundreds of millions to several billion pounds in UK tax revenue over its lifetime, depending on gas prices and production levels. Energy firms and unions, including the GMB, have urged approval, citing job support and energy independence. The decision highlights the central tension in UK energy policy between short-term security of supply and long-term net zero targets.
