The companies involved with Jackdaw and Rosebank have pledged to move forward after the UK Government took steps to facilitate the development of new North Sea oil fields.
Energy Secretary Ed Miliband has released legal guidance that will enable the operators of the Rosebank oil field, Equinor, and Shell’s Jackdaw gas field, located near Aberdeen, to seek approval to commence drilling.
These two initiatives had received approval from the previous administration but were halted by judicial action after environmentalists successfully contested their oil and gas production licenses. They contended that the government had neglected to consider the greenhouse gas emissions that would stem from the combustion of the oil and gas, rather than just the emissions from the extraction process.
The International Energy Agency has previously stated that no new fossil fuel initiatives should be initiated beyond current fields if the planet is to maintain a rise in temperature below 1.5C, beyond which the impacts of climate change will become increasingly severe and irreversible.
Since that time, ministers have been revising the government’s guidance on evaluating emissions in an effort to provide clarity to the sector.
Efforts to ensure clarity In announcing the updates, Michael Shanks, the energy minister, stated that the guidance would deliver “clarity on the way forward for the North Sea oil and gas industry” following the Supreme Court ruling.
He added: “We are working with industry, trade unions, local communities and environmental groups to ensure the North Sea and its workers are at the heart of Britain’s clean energy future for decades to come – supporting well-paid, skilled jobs, driving growth and boosting our energy security.”
The UK Government highlighted £200 million in funding for a carbon capture and storage initiative in Aberdeenshire and a pilot project in Aberdeen – along with locations in Cheshire, Lincolnshire, and Pembrokeshire – to assist workers in gaining employment in emerging clean energy sectors.
Tessa Khan, executive director of Uplift, responded: “The new rules mean that oil and gas companies will finally be forced to come clean over the enormous harm they are causing to the climate.”
She argued Rosebank would not lower fuel bills or boost energy independence as most of the oil would be exported, and tax breaks would mean the public would cover most of the costs of development, adding that the extreme weather the UK is experiencing “must be a wake-up call for this government to stand up to the oil and gas firms”.
A spokesperson for Shell, which is behind the Jackdaw project that was originally approved in 2022, said: “We are reviewing today’s guidance and remain committed to delivering Jackdaw, which is a nationally important energy project and supports the government’s growth agenda.
“Jackdaw would provide enough fuel to heat 1.4 million UK homes at a time when the UK remains reliant on imported gas to meet its energy needs.”
Offshore Energies UK’s chief executive David Whitehouse described the guidance as “an important step”, adding: “The publication of this guidance enables firms to move ahead with the process to responsibly develop projects that add jobs and value to the UK economy and boost energy security.”
A spokesman for Equinor said: “We welcome clarity and can confirm that we will submit a downstream end user combustion emissions (‘Scope 3’) assessment in full compliance with the government’s new environmental guidance.”
At the same time, the Scottish Government has unveiled limits on the greenhouse gases Scotland will produce over the upcoming decades as part of its climate change initiatives.
The Carbon Budgets propose legally binding limits on emissions from 2026 to 2045. These proposed budgets, which are set to replace net zero targets, align with recommendations from the independent Climate Change Committee (CCC) and assessments from the Scottish Government itself.
The average emission levels for Scotland during each five-year interval are: –
In Case You Missed it:
- 57% lower than 1990 levels for 2026 – 2030
- 69% lower than 1990 levels for 2031 – 2035
- 80% lower than 1990 levels for 2036 – 2040
- 94% lower than 1990 levels for 2041 – 2045
These proposals will be examined by Parliament before a vote takes place in the autumn.
Cabinet Secretary for Climate Action and Energy Gillian Martin said: “When we publish our draft Climate Change Plan later this year, it will set out the policies needed to continue to reduce our emissions and meet our first three carbon budget targets.
“It will not ask the impossible of people. We will not sacrifice people’s health or wealth.”
