UK approves Jackdaw gasfield, saying supply starts this winter

Summary

• The UK government approved the Jackdaw gasfield in the North Sea, with gas flowing from month's end.
• Labour's 2024 manifesto banned new drilling licences, but Jackdaw's operators sought approval under an existing licence.
• Energy secretary says 27 jobs created and 273 secured; campaigners say the field covers 2% of demand.

The latest

Gas from the North Sea's Jackdaw field will start reaching UK homes and businesses from the end of the month after the government cleared the project, a decision expected for weeks. Energy secretary Miatta Fahnbulleh said she had agreed the regulator can grant consent, and that the approval is compatible with the UK's legally binding climate commitments. Environmental groups and some Labour MPs oppose it.

Details

• The licence question: Labour's 2024 election manifesto committed to banning new drilling licences in the North Sea. The companies behind Jackdaw and the separate Rosebank oilfield did not seek new licences; they applied for environmental approval on licences they already hold, and resubmitted those applications earlier this year.
• The timing: A decision had been expected last month but was delayed, apparently to push it past the Holborn and St Pancras byelection on 8 October, where Labour defended the seat against a Green challenge and won. Rosebank is being decided separately, with no date announced.
• The jobs figure: Asked how many jobs the field would create, Fahnbulleh said it will create 27 and secure 273, adding that employment was not the primary consideration behind the decision. Andy Burnham said the drilling will protect hundreds of jobs and help keep millions of homes warm this winter.
• The government case: Fahnbulleh said the field supports energy security with homegrown gas this winter and minimises use of imported higher-emission fuels during the transition to renewables and nuclear. She said the government remains committed to ending new oil and gas licences and reaching net zero by 2050.
• The sweetener: Fahnbulleh said the government will launch a new energy wealth fund with a £2bn downpayment, reinvesting oil and gas revenues into the climate transition. Ministers hope the fund demonstrates that approving new gasfields is not at odds with Britain's climate commitments.
• The prime minister: The prime minister said it is right to look responsibly at maximising Britain's existing reserves while people struggle with costs, and that even on an ambitious climate path the country will need oil and gas for decades. He described the North Sea approach as pragmatic.
• The opposing numbers: Tessa Khan, executive director of the anti-oil group Uplift, said Jackdaw will supply roughly 2% of UK gas demand for about 10 years, has been oversold, and will not halt the decline in North Sea jobs because it is largely unmanned and operated remotely. The industry says the fields will deliver 10% of UK output at peak.
• The climate argument: Khan said Labour's climate credibility is on the line and that no new oil and gasfields are compatible with safe climate limits. The UN Environment Programme has said global carbon emissions must fall by nearly a fifth within four years and close to half within a decade.
• The Trump factor: Donald Trump urged Burnham to open Jackdaw and Rosebank, posting that the UK should go "FULL BLAST" on North Sea drilling, calling Aberdeen a prosperous oil region and demanding Britain take down what he described as costly windmills.

Between the lines

The gap between the two sets of numbers is the whole fight. Ministers lead on security of supply and winter gas, having conceded jobs were not the main driver; opponents lead on scale, putting the field at 2% of demand against the industry's 10% of output. The £2bn fund is the government's attempt to hold both the approval and the net zero pledge.

What's next

Gas is due to start flowing from Jackdaw at the end of the month. The separate decision on the Rosebank oilfield is still pending, and the energy wealth fund's £2bn downpayment has yet to be set up.

Source: The Guardian