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Plans to begin drilling in the North Sea’s Jackdaw gas field off the coast of Scotland have been approved by ministers, confirming the future of the project which at points appeared to be uncertain.
Prime minister Andy Burnham has insisted the decision will “protect hundreds of jobs and help keep millions of homes warm”, while also sticking to pledges on renewable energy.
But the move is controversial, with critics arguing that it goes against the government’s green commitments.
In its 2024 manifesto, the government said it would not issue any new oil and gas licences in the North Sea, but added that it would honour existing ones such as Jackdaw.
Energy secretary Miatta Fahnbulleh says her decision comes after “careful consideration of all relevant factors”, adding that it is in line with the government’s climate commitments.
She said: “This decision will support the country’s energy security with homegrown gas this winter and help minimise the UK’s use of imported higher emission fuels as we continue our transition to renewables and nuclear.
The government is yet to make a decision on Rosebank, another North Sea drilling project off the coast of Shetland.
What is Jackdaw?
Jackdaw is an untapped gas field that lies about 150 miles east of Aberdeen. It is operated by Adura, a joint venture formed by energy companies Shell and Equinor.
It was approved by the previous Tory government in 2022, while Rosebank was given the green light in 2023.
Both of these decisions were then struck down by the Scottish courts after a challenge from environmental campaigners.
The move followed a Supreme Court ruling that developers had to account for the climate impact caused by burning fossil fuels in their planning applications.
Adura has since shared new information on the emissions from the end use of gas and oil extracted from Jackdaw and Rosebank.
Fresh public consultations on the proposals took place this year, closing in August to leave the final decision with the government.
What is controversial about the project?
Although both Jackdaw and Rosebank, if approved, would be in line with the government’s manifesto commitments, experts have warned they go against ministers’ aims on renewables and energy independence.
Adura and other voices in the gas industry have said that production across the two sites will support UK jobs while also boosting the country’s energy security, especially as the US-Iran war drives up imported fuel costs worldwide.
But campaigners say the new gas fields will actually have little impact on prices, while damaging the UK’s efforts to reduce its carbon emissions.
The International Energy Agency (IEA) said the world should not invest in new fossil fuel supply if it is to limit global warming to the key Paris Agreement target of 1.5C above pre-industrial levels.
Britain is considered a world climate leader in its pursuit of Paris Agreement goals, and has legally binding commitments to cut emissions to zero overall by 2050.
Green leader Zack Polanski described the decision as “climate vandalism”, claiming that “Labour has abandoned all credibility in the fight against climate change.”
A decision is yet to be made on the Rosebank project, but the energy secretary has indicated that the government will not necessarily take the same approach.
She told BBC Radio Scotland: “Jackdaw is producing gas that predominantly is used in the domestic market, Rosebank is a different proposition because it is oil that is exported”.
Will Jackdaw lower energy bills?
The big question for UK consumers is a straightforward one to ask. But campaigners against the gas fields are unequivocal in their belief that any benefits will not be seen by households, with energy transition support group Uplift saying “it won’t knock a penny off our energy bills”.
This is because the resources will be sold at prices dictated by international markets, which are influenced by factors such as the supply disruptions currently being caused by the Middle East crisis.
While gas from Jackdaw will feed directly onto the UK’s grid, it will still come at a cost governed by the high global market prices.
Uplift’s executive director, Tessa Khan, said: “Jackdaw will provide around just 2 per cent of our gas demand for roughly 10 years. It has been oversold and won’t stop the decline in North Sea jobs, as it will be largely unmanned and operated remotely.
“Shell will be cheering this decision but it won’t knock a penny off our energy bills, which is what’s keeping people up at night, or make a meaningful difference to our gas supply.”
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.”
Will new North Sea drilling help to boost the economy and energy security?
Bosses at Adura and industry stakeholders have argued the two projects will provide domestically produced gas to British homes.
Supporters say the fields will also improve the UK’s energy security.
However, even if the UK could legally or practically ringfence the resources entirely for domestic use rather than export – which it cannot – the country would still remain a net importer of fossil fuels, beholden to volatile international prices and supply disruptions.
The group Uplift, which campaigns for a transition away from oil and gas production in the UK, has found that Jackdaw would have no meaningful impact on the UK’s energy security – providing just 2 per cent of UK gas demand over its roughly 10-year lifetime.
Many environmentalists and experts have argued that only by boosting homegrown clean energy can the UK improve its energy security.
The End Fuel Poverty Coalition argued that the North Sea basin is in decline and approving new projects will prolong the country’s exposure to price shocks, while ministers should be focusing on accelerating the transition.
Will the project create jobs?
Although one of the most championed points in favour of Jackdaw is the creation of British jobs, industry documents released in July show that only 27 full-time roles will be created as a result of the project.
The document from Adura stated: “Over the lifetime of the field there would be a consistent level of employment averaging at nearly 500 jobs a year in direct, indirect and induced employment – this includes 273 direct jobs which exist on the Shearwater host installation and [an] additional 27 Jackdaw-specific jobs.”
Responding to reports at the time, an Adura spokesperson said: “Jackdaw and Rosebank will support 3,500 jobs at peak construction with 880 high-quality, well-paid jobs sustained throughout production in communities across the UK.
“The projects will generate a combined gross value added of over £28bn across their lifetimes and generate immediate tax revenues of £1.4bn before the end of this parliament.”
Rosebank is understood to be significantly larger than Jackdaw. The project is estimated to cost £8.7bn over its 25 year lifespan, compared to £2.1bn for Jackdaw over 11 years.