Energy sector wants ‘powerful reset’ from Andy Burnham’s Government
Ministers in new administration urged to give Jackdow and Rosebank the go-ahead
The UK government is being urged to give the controversial Jackdaw and Rosebank oil and gas projects the green light as part of what could be a “powerful reset” for the sector from Andy Burnham’s new government.
David Whitehouse, the chief executive of industry body Offshore Energies UK (OEUK) insisted there is an “overwhelming” case for both to go ahead – despite the objections of environmentalists.
He spoke out on the issue as reports claimed that the UK Government could approve them as early as August.
Such a move could be part of what Mr Whitehouse described as a “powerful reset for the sector that shows that the Burnham Government is supporting British industry”.
He said: “Jackdaw is particularly time-critical because it could supply gas the UK needs this winter, while Rosebank is expected to follow later.
“OEUK believes there is an overwhelming case for both projects and for the wider pipeline of UK offshore energy investment. Approving them will help the UK meet more of its own energy needs, support jobs and economic value, produce oil and gas with lower emissions than imports and strengthen energy security.
“Ultimately, we need Jackdaw, Rosebank and other projects approved alongside regulation that enables rather than stifles activity, and early introduction of the Treasury’s proposed oil and gas revenue levy to provide investor certainty and unlock £50bn of new capital investment and more than £13bn in tax revenues.”
Speaking about those two projects – both of which lie in Scottish waters – Mr Whitehouse declared: “The case to support them is overwhelming, both from an environmental perspective, but also the wider social impacts of the fact that they will support jobs and value in the economy.”
Consultations on Jackdaw and Rosebank are due to run until August 10 and August 17 respectively, with the Offshore Petroleum Regulator for Environment and Decommissioning (Opred) due to make a recommendation to the UK government after that.
If the decision is in their favour, work could commence “very quickly”, Mr Whitehouse added
He told how “considerable amounts of money and considerable activity” had already been put into both fields, adding that “the Jackdaw platform itself is installed, the wells are drilled”.
While climate campaigners continue to object to the planned developments, the OEUK chief executive said both these, and a “significant number of additional projects” which could come afterwards could “help the UK meet more of its own production” needs for oil and gas, without having to rely on imported fuels.
Adding that a decision on Jackdaw could be made towards the end of August or possibly in September, Mr Whitehouse said: “Jackdaw will produce a significant amount of the gas the UK will need over the winter period.
“In my view it would be right to approve it. But we need it online ahead of winter.”
While the UK Labour government has so far been opposed to new oil and gas developments – in line with its 2024 manifesto pledge – Mr Whitehouse said the new Energy Secretary Miatta Fahnbulleh had told him she would take a “pragmatic approach”.
He met with Ms Fahnbulleh on Thursday, as she went to Aberdeen in what was her first visit since taking over from Ed Miliband.
Mr Whitehouse pointed out that Mr Burnham also “speaks a lot about the importance of place, and the importance of industry, reindustrialisation”.
The OEUK chief executive accepted it is “fundamentally right we build out renewable energy, it is right that we tackle climate change”, but adding that the UK will “use oil and gas for decades to come” he said it was “right that the Government should be supporting our own production over imports”.
He stated: “When we produce oil and gas in the North Sea we will produce it cleaner than imports, and we put real value back into the economy. We pay significant taxes which the Chancellor can use to support people’s bills.
“For all those reasons it is right we should be backing UK industries.”
However he warned the “consequences would be truly significant” if consent for both Jackdaw and Rosebank is refused.
A spokesman from the Department for Energy Security and Net Zero said: “The North Sea remains a vital national asset, supporting jobs, growth and the UK’s energy security.
“We are clear that oil and gas will continue to play an important role in our energy system for decades to come, alongside renewables, nuclear and other low-carbon technologies.
“Our focus is on providing stability and supporting North Sea workers and communities as they continue to make a vital contribution to the UK’s economy.”
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