Tony Blair's Institute Urges Approval of Rosebank Oil Field

Sir Tony Blair has urged the government to approve the Rosebank oil and gas field, emphasizing the need for a clear energy strategy to secure investment and maintain the North Sea basin's future. A report by the Tony Blair Institute (TBI) states that delaying new projects risks accelerating the decline of the basin and closing off future investment opportunities.

The TBI report recommends that the government establish a "stable policy and fiscal framework for further commercially viable North Sea projects." It suggests that approving Rosebank would signal confidence to operators and suppliers, encouraging them to commit capital, retain skilled workers, and maintain essential infrastructure. The report warns that isolated approvals amid ongoing uncertainty will not provide the necessary confidence for sustained investment.

According to the report, Adura's estimates indicate that the Rosebank project alone represents £8.7 billion in investment and could contribute £24.3 billion in gross value added (GVA) to the UK economy. Other potential developments, such as Cambo, are also highlighted for their economic potential, with an estimated £13.7 billion in GVA. The TBI further projects that the Rosebank development could generate an additional £2.6 billion in direct and supply chain tax revenues between 2026-27 and 2035-36.

Industry leaders have echoed these sentiments, with Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, calling the TBI's intervention "hugely welcome." He argued that a successful energy strategy must balance affordable power, job protection, energy security, and economic growth. Borthwick stressed the need for a pragmatic approach to the energy transition, acknowledging that oil and gas will remain vital for decades.

"We cannot build a stronger, more prosperous Britain by deliberately managing the decline of one of its most important industries," Borthwick stated. He urged the government to approve Rosebank without delay and consider ending the windfall tax on oil and gas profits in the upcoming Budget.

A spokesperson for the Department for Energy Security and Net Zero confirmed that any decision would be made through a quasi-judicial process, considering all relevant evidence, including environmental assessments and public representations. The Scottish government's position remains under development, with its energy strategy expected later next year. While the SNP has recently passed a motion supporting domestic drilling, Deputy First Minister Jenny Gilruth indicated that decisions on new projects should be made on a case-by-case basis, considering energy security and climate compatibility.