UK Energy Secretary poised to reject Rosebank oil field plans after approving Jackdaw gas field

Energy Secretary Miatta Fahnbulleh is reportedly poised to reject plans for the Rosebank oil field, the UK's largest untapped oil reserve, just hours after approving production at the Jackdaw gas field. This decision has drawn calls from some union bosses and Labour MPs to proceed with Rosebank, a stance also supported by former U.S. President Donald Trump, who urged the UK to "go full blast" on North Sea resources.

Fahnbulleh indicated that each project is being judged on its own merits, stating that the decision must align with the UK's climate obligations, carbon budgets, and the broader energy transition goals. "One is a gasfield that caters for the domestic market, while the other is an oilfield that is mainly for export," she explained.

The approval of the Jackdaw gas field, which could account for 6% of North Sea gas production and provide a £2.9 billion economic boost, has already faced objections from some Left-wing Labour MPs. These critics argue that the decision sends mixed messages on climate change. Fahnbulleh acknowledged that Jackdaw would not lead to cheaper energy bills but would contribute to energy security.

Unions, including the GMB, have welcomed the Jackdaw approval but urged ministers to also approve Rosebank. Rosebank is estimated to contain between 300 million and 500 million barrels of oil, potentially making up about 8% of UK oil production. Campaigners note that the eventual emissions from Rosebank's oil would be seven times those from the Jackdaw gas field.

Scottish Labour leader Michael Marra and Unite general secretary Sharon Graham have previously expressed support for drilling in Rosebank, arguing it would benefit Scotland's economy. Scottish Labour MP Graeme Downie also stated his approval of the Jackdaw decision, emphasizing the continued need for oil and gas.

Adura, the company behind both projects, believes Rosebank's case for approval is equally strong, highlighting an expected £2.1 billion investment and sufficient gas to heat around 1.4 million UK homes at peak production.

Donald Trump, a vocal proponent of North Sea exploration, praised the Jackdaw decision as "great news" and called for increased drilling, while criticizing renewable energy sources. The Conservative Party also advocated for Rosebank's approval, citing national security benefits and reduced reliance on imports amidst geopolitical uncertainty.

The Labour Party's 2024 manifesto included a commitment to issue no new oil and gas licenses, though both Jackdaw and Rosebank had received prior approvals that were later subject to legal challenges and reassessment. Environmental campaigners have protested the decisions, with the Green Party accusing Labour of "climate vandalism."

Shadow energy secretary Andrew Bowie, writing for the Daily Mail, argued that maximizing North Sea resources is in the national interest, especially with over 80% of UK households relying on gas heating. He stressed the importance of reducing dependence on costly and potentially dirtier imports.

Despite the pressure, a spokesperson for Fahnbulleh reiterated that each project would be assessed individually on its own merits, indicating that the final decision on Rosebank was still pending. Ed Miliband, Foreign Secretary and former energy secretary, is reportedly staunchly opposed to new oil drilling.