Prime Minister Andy Burnham is poised to approve drilling of the Jackdaw gas field in the North Sea on Wednesday, it is understood. The decision comes after months of pressure from opposition parties and his own MPs.
Since coming to power in the summer, Burnham has said he would "take a pragmatic approach when it comes to the North Sea." The Jackdaw gas field was originally approved by the former Conservative government in 2022, but was delayed by a legal ruling from a Scottish court after environmental groups argued consent was given without fully considering the climate impact.
Decision Imminent
Energy Secretary Miatta Fahnbulleh said last Thursday that a decision on Jackdaw is "imminent," but a decision on the Rosebank oil and gas field is set to take "a bit longer." The Prime Minister added that a verdict on the North Sea projects "will come shortly."
He said: "We're not backing away from them, but that's a matter that will be addressed in due course." Burnham is maintaining the Labour manifesto moratorium on any new North Sea licences being issued.
Industry and Environmental Concerns
Industry bodies have argued that starting production at the sites would provide much-needed jobs and improve the UK's energy security as overseas conflicts threaten supply. However, environmentalists fear Jackdaw's gas will hamper efforts to slash planet-warming carbon emissions as deadly heatwaves and extreme weather affect people across the globe.
Jackdaw, which is about 150 miles (241.4km) east of Aberdeen, is a gas field which its operators say could be connected to the UK network within months.
Political Pressure and Criticism
The Conservatives have accused Burnham of "dithering and delaying" on the approval. The Prime Minister was said to be putting off a decision on the Jackdaw gas field until after the crunch Holborn and St Pancras by-election due to fears of the threat from the Green Party.
Mr Bowie had said: "Andy Burnham is dithering and delaying. He has sat on a gas field that is ready to go, because he was frightened of the Green Party in Camden. The by-election is over and his excuse has gone with it, so he should approve Jackdaw immediately."
"If the Prime Minister finally signs it off, nobody should mistake one gas field for a change of heart, because Labour's ban on new licences and its punishing windfall tax are bleeding the North Sea of investment and the jobs that go with it. Approve Jackdaw, approve Rosebank, end the ban on licences, scrap the Energy Profits Levy. That is what a Conservative Government would do, and it is what this Prime Minister should do if he wants anyone to believe he is serious."
Impact on Energy Bills
Energy experts have warned Jackdaw's approval will have no impact on energy bills, which have risen as a result of the increase in wholesale gas prices, driven by the ongoing conflict in the Middle East.
Jess Ralston, analyst at the Energy and Climate Intelligence Unit (ECIU), said: "Let's be clear, approving Jackdaw won't do anything meaningful to bring down energy bills or improve the UK's energy security, which the Government has said is its priority given high levels of public concern. The field is expected to supply only a minuscule share of UK gas demand for a limited period, and the gas will still be sold at international market prices, leaving households and businesses exposed to the same volatile global markets that have driven up bills in recent years by the actions of Presidents Putin and Trump."
