Finally, UK Government Approves New North Sea Drilling!
Labour has finally approved new drilling for gas in the North Sea, despite the project already receiving the go ahead over two years ago under the Tories, after energy prices hit a four-year high.
The Telegraph has more.
Miatta Fahnbulleh, the Energy Secretary, granted approval for the Jackdaw project on Wednesday morning after months of delays.
She is yet to make a decision on the future of Rosebank, the UK’s last major untapped oil reserve, which she said was a “different proposition” to Jackdaw.
Gas prices hit their highest level since December 2022 on Tuesday, and energy bills are expected to rise by hundreds of pounds this winter because of the war in Iran.
In the UK, gas is selling for 210p per therm – more than double what it cost this time last year. It remained below the peak of the energy crisis in August 2022, when prices briefly hit 640p per therm.
Jackdaw has the potential to meet around 6% of the UK’s gas demand and provide enough fuel to heat the equivalent of 1.4 million homes.
The Conservatives first granted permission for drilling of the field – which is 150 miles east of Aberdeen – in 2022, but the project was ruled unlawful after a court challenge by climate activists.
Labour promised to stop issuing new licences for North Sea drilling in its 2024 manifesto, but the commitment did not include projects such as Jackdaw, which had already been approved. The decision was delayed until after the Labour conference, and the Holborn and St Pancras by-election.
On Wednesday morning, Andy Burnham said: “I welcome the Energy Secretary’s decision, which will protect hundreds of jobs and help keep millions of homes warm this winter.
“At a time when people are really struggling, it’s right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help. We’re committed to moving towards renewable energy and reaching Net Zero by 2050.
“But even on our ambitious climate path, we’ll still require oil and gas as part of our energy needs for decades to come. That’s why we’re taking a pragmatic approach to the North Sea,” the Prime Minister added.
There were early signs of a backlash to the decision from Labour backbenchers on Wednesday.
Alex Sobel, the MP for Leeds Central and Headingley who has been a vocal supporter of Burnham, told Politico: “Jackdaw won’t draw gas for many years.
“[It] won’t make an impact on global prices and will give mixed messages in terms of investment in terms of both renewables and decarbonisation of home heating.”
Kemi Badenoch criticised the length of time it had taken to reach a decision on Jackdaw, accusing Labour of spending two years “faffing” about a project already approved by the Conservatives.
“If they’d done this in the summer, we’d have had that gas heating British homes this Christmas,” the Tory leader said. “An unnecessary waste of time and money by a party that puts its own interest above the country’s.”
Worth reading in full.
Stop Press: Fahnbulleh is minded to reject new drilling in the Rosebank oil field because, while Jackdaw “is a gas field that caters for the domestic market”, Rosebank “is an oil field that is mainly for export”, according to comments she made to the Guardian.