North Sea drilling decision tests UK climate pledge

British Prime Minister Andy Burnham must decide in the coming weeks whether to authorise two North Sea drilling projects, testing Labour’s climate pledge against pressure to increase domestic energy supplies and ease household bills.

The consultation period for the Jackdaw and Rosebank projects ended on August 17. Jackdaw is a gas field east of Aberdeen, while Rosebank is a field mainly containing oil west of the Shetland Islands.

The previous Conservative government approved drilling at the two sites in 2022 and 2023, but environmental groups challenged the approvals. A Scottish court ruled last year that the approvals failed to consider the indirect carbon emissions the projects would generate, meaning both must reapply.

Adura, a joint venture created from the merger of the UK offshore operations of Shell and Equinor, is the sole owner of Jackdaw and majority owner of Rosebank. Jackdaw already has infrastructure in place, while Rosebank would take longer to become operational.

Matt Cooper of Rystad Energy said Jackdaw’s wells were drilled and the project could be ready within months if approved. James Reid of Wood Mackenzie said Jackdaw gas could reduce some liquefied natural gas imports, but expected volumes would remain modest at market scale.

Analysts cited in the supplied material said the effect on household energy bills could be limited because UK energy prices are strongly influenced by international markets. Environmental advocates argue that more fossil fuel production can encourage consumption and delay the energy transition.

Labour pledged before coming to power in 2024 that it would not approve new drilling licences in the North Sea. Since becoming prime minister a month ago, Burnham has said Britain “can’t ignore” its oil and gas reserves.