The UK Government has given the go-ahead for drilling at the Jackdaw gas field in the North Sea, arguing that the project could help ease pressure on household energy bills.
The decision is expected to provoke a strong response from environmental campaigners and some Labour MPs, after the Prime Minister abandoned the party’s earlier manifesto pledge to block new licences for oil and gas production.
Environmental groups have consistently criticised new North Sea developments, while the offshore energy sector has highlighted their potential contribution to jobs, energy security and the wider economy.
Supporters of the Jackdaw project have previously estimated that it could provide around 3,500 construction jobs, followed by approximately 880 positions throughout the field’s operational life.
Prime Minister Andy Burnham said approval for Jackdaw would “protect hundreds of jobs and help keep millions of homes warm this winter”. However, he also maintained that the Government remains “committed to moving towards renewable energy”.
Because most North Sea gas is consumed within the UK, ministers argue that it could have a more direct impact on domestic energy costs than oil, which is largely exported.
The previous Conservative government approved the development in 2022, but work was put on hold following a legal challenge from Greenpeace. That left the Labour Government responsible for deciding whether the drilling should proceed.
Energy Secretary Miatta Fahnbulleh acknowledged that the project would add to climate change, but argued that using gas produced in the UK was “much better” than importing supplies from overseas.
The Prime Minister has faced pressure from climate activists and Labour backbenchers to honour the spirit of the party’s manifesto and refuse approval for the project
Speaking in Aberdeen, Ms Fahnbulleh said the country would continue to need gas while billions of pounds were invested in low-carbon energy and the transition to renewables continued.
She said the Government faced a choice between using gas produced “on our doorstep”, where emissions could be regulated, and importing gas or oil from elsewhere in the world. In her view, domestic production was the preferable option.
Ms Fahnbulleh added that the decision would strengthen the UK’s energy security while helping to safeguard jobs in Aberdeen.
Mr Burnham said the Government had a responsibility to examine how Britain’s existing energy reserves could be used to support households at a time when many people were struggling with rising costs.
He reiterated the Government’s commitment to expanding renewable energy and achieving net zero emissions by 2050.
However, the Prime Minister said oil and gas would remain part of the UK’s energy mix for decades, even under an ambitious programme to tackle climate change.
He described the Government’s North Sea policy as pragmatic and said a new Energy Wealth Fund would channel investment into renewables, support the green transition and help bring down bills over time.
Mr Burnham said the strategy was designed to improve energy security, support British workers, reserve future North Sea revenues for the move to clean energy, meet climate targets and ultimately reduce household bills.
Climate campaigners condemned the approval as disappointing and called on ministers to reject the Rosebank oil field, which they described as an even more damaging proposal.
Kate Norgrove, WWF’s chief impact officer, said the Government must now demonstrate its commitment to the clean energy transition by refusing consent for Rosebank.
She also urged ministers to publish a clear plan for ending the UK’s reliance on fossil fuels, while securing well-paid jobs in the clean energy sector and shielding the public from further increases in energy costs.
‘The truth is that this decision will only support a tiny number of jobs, do nothing to lower prices, barely move the needle on growth, and undermine the UK’s climate leadership.
‘We have all seen the devastating consequences of rising temperatures this summer for people and nature, and it’s clear that politicians are out of step with public opinion on taking action on climate change.’
Green Party of England and Wales leader Zack Polanski blasted the decision to approve Jackdaw as ‘climate vandalism’.
He said: ‘Today’s decision by Labour is a betrayal of all of our futures, Labour has abandoned all credibility in the fight against climate change.
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‘The Energy Secretary has herself said it will make no difference to energy bills, the Health Secretary has admitted the summer heatwave added to pressure on the NHS and the industry’s own assessment is that will create only 27 jobs.
‘This is a victory for Shell over the people.’
Supporters say it could create 3,500 jobs during construction and 880 over the course of its useful lifetime
Jackdaw is a gas field situated 150 miles east of Aberdeen.
Adura, the joint venture between Shell and Norweigian state energy firm Equinor which is behind the project, previously said the move would strengthen energy security and support vital jobs.
An updated environmental impact assessment earlier this year also said it will ‘not materially influence’ greenhouse gas emissions.
It is estimated that both the Jackdaw gas field and Rosebank oil field west of Shetland can contribute £28.7billion to the economy, generate £1.8billion in tax revenues by the end of this parliament, support 3,500 jobs at peak construction and sustain 880 jobs throughout production.
Conservative leader Kemi Badenoch previously said that reopening Jackdaw was ‘common sense’.
Speaking earlier this year she said Mr Burnham faced a ‘choice’ of either pushing for cheaper energy or allowing ‘Net Zero madness’ to ‘hold our country back’.
She added: ‘Jackdaw alone could supply around 6 per cent of our gas needs this October.’
It is a move which will also please US President Donald Trump, who popularised the phrase ‘drill baby drill’ in his 2024 election campaign, calling for an increase oil and gas production worldwide.
North Sea oil was high on the agenda when Burnham and Trump first shared a phone call in July.
The President has repeatedly argued Britain should exploit more aggressively rather than relying on wind farms.
He said on Truth Social: ‘I had a very good conversation with the new Prime Minister of the United Kingdom, Andy Burnham. We discussed many subjects, including the outstanding relationship we have had with the UK. We will be meeting in the not too distant future for topics of mutual interest.
‘The Prime Minister has got a big job ahead of him, but he will be able to do it and, of course, the U.S.A. will be there to help! We discussed North Sea Oil, Trade, the Military Alliance, Demining of the Hormuz Strait, and many other topics.
Donald Trump has repeatedly called for the Prime Minister to exploit oil and gas more aggressively rather than relying on wind farms
Energy Secretary Miatta Fahnbulleh said it is ‘much better’ to use domestically produced gas than import it
Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, praised the change of heart by the government and called for them to go further and approve Rosebank.
He said: ‘This is a hugely welcome decision, and exactly the sort of pragmatic call the North Sea has been crying out for.
‘Jackdaw is 99.9 per cent complete and, with approval now secured, gas from this field will be flowing into homes up and down the country within weeks.
‘This is a direct, tangible boost to the UK’s energy security at a time when it matters most.
‘Every molecule of gas we produce in the North Sea, under some of the world’s highest environmental standards, is a molecule we don’t have to import on a tanker from overseas. That’s good for jobs, good for the supply chain, and good for the climate.
‘But Jackdaw cannot be the end of the story. Rosebank is every bit as vital to our energy security and every bit as ready to deliver for the UK supply chain anchored here in the north east of Scotland.
‘Government must now move with the same urgency and pragmatism and get Rosebank over the line without further delay.’
