Labour is facing renewed pressure to approve the Rosebank oil field after Energy Secretary Miatta Fahnbulleh gave the go-ahead for production at the Jackdaw gas field.
Ms Fahnbulleh indicated that Rosebank was unlikely to receive the same decision, arguing that the two projects had to be considered separately because one would mainly supply the domestic market while the other would export oil.
“It is right that we judge each application in its own right, and it is absolutely critical that the decision is consistent with our climate obligations, our carbon budgets and the end destination we need to get to with the energy transition,” she said.
Rosebank, located in the North Sea, is estimated to contain between 300 million and 500 million barrels of oil and could account for about 8 per cent of UK oil production. Climate campaigners say the emissions generated by the project would be seven times those associated with Jackdaw.
Pressure grows over Rosebank oil field
Trade union leaders and Labour MPs have urged the Government to support the development, saying it would help protect jobs and strengthen the economy in Scotland.
Gary Smith, the GMB general secretary, welcomed the decision on Jackdaw but called on ministers to go further and approve Rosebank. Unite general secretary Sharon Graham has also previously backed the project.
Scottish Labour leader Michael Marra has said he supports drilling at Rosebank, arguing that it would boost Scotland’s economy. Scottish Labour MP Graeme Downie said he was “glad” Jackdaw had been approved and that the UK would need oil and gas for decades.
Neil McCulloch, chief executive of Adura, which is part-owned by Shell and is behind both projects, said the case for Rosebank was “equally strong”.
Jackdaw could begin supplying gas to British homes and businesses within weeks. It is expected to account for 6 per cent of North Sea gas production when fully operational, provide a £2.9 billion economic boost and protect jobs.
Ms Fahnbulleh acknowledged that the project would not reduce household energy bills, but said it would contribute to energy security during a period of conflict in the Middle East.
The approval has prompted criticism from some Labour MPs. Richard Burgon called it an “absolutely terrible decision”, while Alex Sobel said it sent “mixed messages” on climate change.
Environmental campaigners protested outside the Energy Department and the Green Party accused Labour of “climate vandalism”. They called on the Prime Minister not to approve Rosebank.
Former energy secretary Ed Miliband is understood to be firmly opposed to the new oil drilling. Labour’s 2024 manifesto pledged that no new oil and gas licences would be issued for the North Sea, although both Jackdaw and Rosebank had already received approval before those decisions were overturned following a legal challenge and fresh assessments were carried out.
Donald Trump also urged the UK to expand North Sea drilling after Jackdaw was approved. The US President described the decision as “great news” and said: “They should go FULL BLAST!!! This will make the U.K. very wealthy again. TAKE DOWN THE COSTLY AND RIDICULOUS WINDMILLS!”
The Conservatives have called for Rosebank to be approved. Shadow energy secretary Andrew Bowie said that, with more than 80 per cent of UK households relying on gas heating, it was in the national interest to maximise North Sea resources and reduce dependence on imports.
Andy Burnham said Labour remained committed to renewable energy but would still require oil and gas for decades. “That’s why we’re taking a pragmatic approach to the North Sea,” he said.
A Government spokesman said each project would be “assessed on its own merits”.
