Major new North Sea oil and gas drilling licences could be granted within weeks, the Sunday Mail understands. The controversial Jackdaw and Rosebank fields would secure around 3,500 Scottish jobs and boost the UK economy by £28 billion over their lifetime.
Prime Minister's stance
Sources close to the project have said Prime Minister Andy Burnham is increasingly convinced green lighting the projects will help combat the cost of living and increase energy security in the face of global instability while supporting the skills required for a transition to renewables.
A public consultation on Rosebank - the largest untapped oil field in the North Sea which lies 80 miles north west of Shetland - closes tomorrow (Mon). A similar exercise for the planned Jackdaw gas field 150 miles east of Aberdeen finished on August 10.
A source said: “The prime minister understands the importance of these developments to the UK economy and to overall energy security for the UK.
“It has been clear from his statements so far that he wants a pragmatic energy policy that moves as fast as possible towards green energy but supports oil and gas so long as hydrocarbons remain a substantial part of our energy mix and skills in these industries are going to create a bridge to the green jobs of the future.
“The consultations with both be finished as of tomorrow and the industry is expecting a decision relatively quickly - we are expecting that to come in September.”
Industry reaction
US President Donald Trump has long urged the UK to increase drilling and claimed that Burnham had pledged to “open up the North Sea” in their first phone call together.
Russell Borthwick, Chief Executive of Aberdeen and Grampian Chamber of Commerce, said: “The positive noises coming from the new prime minister around the approval of Jackdaw and Rosebank are certainly welcome, and it seems that the regulatory process is pressing on now after a long hiatus.
“These multibillion-pound projects represent thousands of jobs and a vast supply chain right across the UK.
“Ensuring they are approved in the coming weeks to provide the energy the UK needs this winter will be the first major test for Andy Burnham’s government and their sense of purpose on energy security and investment.”
Production at both fields had been approved by the previous Conservative government, but those decisions were quashed after a legal challenge from Greenpeace, leaving Labour ministers to decide now whether or not drilling should go ahead.
Climate concerns
It comes as the Met Office said it is “increasingly likely” that 2026 will the UK’s hottest ever summer. In a letter to both the Prime Minister and Energy Secretary Miatta Fahnbulleh, Stop Climate Chaos Scotland (SCCS) warned that the “consequences of climate change are already being felt, through more extreme heat, drought, wildfires and growing risks to food insecurity”.
They were told that approving Jackdaw and Rosebank would have “consequences for the UK’s international climate leadership”. While the campaigners said the UK had “made progress in reducing emissions”, they warned that “credibility will be undermined” if new developments in the North Sea are given the go ahead.
But industry body Offshore Energies UK has argued that delaying Rosebank and Jackdaw had weakened confidence in domestic oil and gas development and contributed to greater reliance on imports. The organisation argued that imported supplies can carry a carbon footprint up to four times higher than production from UK waters.
At peak output the new fields could account for 10 per cent of UK domestic gas production and 10 per cent of oil output. Rosebank has an expected operating life of 25 years, while Jackdaw is forecast to produce for 11 years and could supply gas directly for consumption in the UK.
OEUK chief executive David Whitehouse said: “Permission for these two projects would help clear the log jam preventing development of other projects in the North Sea”.
A spokesperson for the Department of Energy Security and Net Zero said: “The North Sea remains a vital national asset, supporting jobs, growth and the UK’s energy security.
“We are clear that 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.”
First Minister John Swinney has refused to say whether he would support new licences being granted while accusing the UK government of failing to support the oil and gas industry.
