Prime Minister Andy Burnham’s administration is facing a significant challenge to its energy policy and climate commitments as impending decisions loom on two major North Sea oil and gas developments: the Rosebank oilfield and the Jackdaw gas project.
The public consultation for Rosebank concluded today, while the Jackdaw project’s consultation period ended last week. Both schemes have been forced to reapply for development consent following a landmark court ruling over two years ago that spotlighted the climate impact of burning fossil fuels.
Senior figures within the Burnham government anticipate that Miatta Fahnbulleh, the Energy Secretary, may greenlight these projects as early as next month. This potential approval comes amidst heightened public alarm over climate change, exacerbated by record-breaking summer temperatures and widespread wildfires across Britain. On Friday, an emergency alert regarding wildfire risk was issued to residents in England and Wales.
The Prime Minister has committed to upholding Labour’s 2024 manifesto, which explicitly pledged against issuing new oil and gas exploration licences in the North Sea. However, the government is signalling a more accommodating approach to the existing industry. Both Rosebank and Jackdaw, operated by Adura – a joint venture between oil majors Shell and Equinor – already possess licences, with the current decisions focused on granting development consent.
An unnamed senior UK official commented to the FT on a perceived shift, stating that the approach to the North Sea had become less “dogmatic” since Ed Miliband’s departure from the energy department to become Foreign Secretary. The official added: “The Treasury was always trying to get Ed to give ground on things but Keir Starmer didn’t want to take him on. Ed was formidable in pursuing that agenda.”
Industry representatives also express confidence. Miatta Fahnbulleh’s inaugural visit in her capacity as Energy Secretary was to Aberdeen, a pivotal hub for Britain’s oil and gas sector, where she met David Whitehouse, Chief Executive of Offshore Energies UK. “The mood music is different,” an industry executive noted. “There’s a sense that the new secretary of state is willing to engage; the last one wasn’t.”
Intense lobbying surrounds these projects, with a decision expected within weeks. Proponents argue that domestic production is preferable to imports for meeting the UK’s energy needs, citing benefits such as reduced emissions from shipping, enhanced regulatory oversight, and significant contributions to British taxes and employment.
Oil and gas currently supply approximately 75% of Britain’s primary energy demand, largely due to ongoing reliance on gas for heating and electricity generation, and petrol and diesel for transport. This reliance is expected to remain substantial even as the nation transitions towards lower-carbon energy sources.
Russell Borthwick, Chief Executive of the Aberdeen & Grampian Chamber of Commerce, articulated this dilemma in a recent letter to parliamentarians: “The question facing policymakers is therefore not whether the UK will continue to consume oil and gas, but where that energy should come from.”
Russell Borthwick, chief executive of AGCC, said: “The debate about the future of the North Sea has become one of the defining economic and energy policy discussions facing the UK.
“The decisions taken over the next few years will have profound implications for jobs, investment, public finances, energy security and the success of the energy transition itself.”
These comments come as AGCC launches a new online resource, North Sea Facts, aimed at resetting the national debate on the future of the North Sea.
Borthwick continued: “Too often, however, that debate has become dominated by slogans rather than evidence. North Sea Facts has been created to help reset the conversation by putting independently sourced data and publicly available evidence at the centre of it.”
Conversely, opponents highlight that much of the North Sea’s oil is exported to European refineries due to insufficient domestic refining capacity, meaning international buyers would compete for the output.
Climate scientists underscore the urgent necessity to reduce fossil fuel consumption, contending that the government should prioritise expanding renewable energy infrastructure.
In a letter, Stop Climate Chaos Scotland (SCCS) – a campaign group made up of more than 70 organisations with around a million supporters – said the new Prime Minister must block the proposed developments.
It warned Mr Burnham and Energy Secretary Miatta Fahnbulleh that the “consequences of climate change are already being felt, through more extreme heat, drought, wildfires and growing risks to food insecurity”.
The letter claimed that approving new fields such as Rosebank and Jackdaw is “not compatible with climate goals”.
The SCCS collective includes Bill McGuire, Professor Emeritus of Geophysical and Climate Hazards at University College London, and Ken Carslaw, Professor of Atmospheric Science at the University of Leeds.
In the letter, they also stated: “We have already burned far too much, and this has made extreme heat, fires, floods and harvests more frequent and more deadly.”
They concluded: “There is nothing pragmatic about enabling this to continue into the decades ahead.”
The Rosebank field, situated roughly 80 miles north-west of the Shetland Islands, is the UK’s largest undeveloped oil reserve, projected to yield approximately 69,000 barrels of oil per day at its peak, alongside gas.
In Case You Missed it:
Jackdaw, located approximately 150 miles east of Aberdeen, could commence gas production as early as autumn, potentially supplying around 6.5% of the UK’s North Sea gas output.
Both projects initially received development consent under previous Conservative governments in 2022 and 2023. However, these approvals were subsequently overturned in early 2025 by the Court of Session in Scotland.
Both Equinor and Shell, in their environmental impact submissions, contend that the projects will not significantly impede global climate objectives. A spokesperson for the energy department affirmed that the Secretary of State would consider public consultation feedback before rendering a decision, reiterating that the North Sea remains a “vital national asset” and that oil and gas “will continue to play an important role in our energy system for decades to come.” They added: “Our focus is on providing stability and supporting North Sea workers and communities as they continue to make a vital contribution to the UK’s economy.”
