Andy Burnham has approved the Jackdaw gas field in the North Sea, a decision that has drawn criticism from environmental groups who argue it will do little to address the UK's energy challenges.
Limited Impact on Energy Security
The Uplift green group said the reserves would provide just 2% of UK annual gas demand on average over its roughly 10-year lifetime. This means Jackdaw's gas would, on its own, power the UK for just over two months at current levels of demand.
Official projections show that the UK's reliance on imports is set to rise from around 55% currently to more than two-thirds dependent by 2030, and over 90% dependent on gas imports by 2050 – even if new fields like Jackdaw are developed. Most of what is left in the ageing North Sea is oil, the vast majority of which is exported.
No Effect on Energy Bills
Jackdaw is not set to make a difference to UK energy bills because bill rises are being driven by rising wholesale gas prices as a result of the ongoing conflict in the Middle East.
The last energy crisis, following Russia's invasion of Ukraine that sent gas prices soaring, cost the UK more than £180 billion over four years and pushed millions of households into fuel poverty.
Minimal Job Creation
The North Sea workforce has more than halved in the past decade despite new field approvals, figures showed. North Sea production rose by a fifth between 2014 and 2019, while employment in Aberdeen's oil and gas sector fell by 11%. Green groups said this suggests that more production no longer means more jobs.
Only 27 direct full-time jobs would be created by Jackdaw, one of the biggest gasfields remaining in the North Sea, according to an environmental impact assessment filed publicly by its owner, Adura, a joint venture between Shell and Norway's Equinor.
Political Context
Labour's 2024 manifesto committed to issuing no new oil and gas licences for the North Sea. But proponents of Jackdaw and Rosebank within the party have argued that neither are new fossil fuel fields, given the wheels were in motion to tap them ahead of Labour winning power.
Energy Secretary Miatta Fahnbulleh has said a decision on Rosebank, the largest untapped oil field in the North Sea, will take “a bit longer”, suggesting it will be made separately from Jackdaw.
