Prime Minister Andy Burnham is reportedly poised to approve the development of a new North Sea gas field within days, a move that seeks to lower domestic energy bills but faces opposition from environmental groups. The approval for the Jackdaw field, located off the coast of Aberdeen, is anticipated as early as mid-September, preceding Burnham's first party conference as Labour leader.
The decision comes as the government weighs the potential economic and energy security advantages against environmental concerns. Supporters of the project highlight the creation of approximately 3,500 jobs during the construction phase and an additional 880 jobs over the field's operational life. Gas from the North Sea is primarily consumed domestically, making it a key resource for reducing household energy costs, unlike oil which is largely exported.
Previous approval for gas production in the North Sea was granted by the Conservative government in 2022, but these decisions were later overturned following a legal challenge by Greenpeace. This leaves the current Labour administration to make the final determination on whether drilling should proceed.
Prime Minister Burnham has faced pressure from climate activists and some within his own party to uphold Labour's manifesto commitments by refusing consent for new drilling. However, Burnham has previously indicated a willingness to adopt a "pragmatic approach" regarding North Sea developments, suggesting a potential shift in the party's stance.
The Jackdaw field, along with the associated Rosebank oil field, has garnered support from candidates vying for leadership positions within Scottish Labour. A public consultation on the proposals concluded last month.
Separately, Conservative shadow energy secretary Andrew Bowie has urged the government to expedite its decision. Bowie stated in the House of Commons that the consultation period has ended, and the department should no longer delay. He emphasized the need for a swift decision for the benefit of the oil and gas industry and its workforce across the United Kingdom.
Climate Transition Minister Kate White acknowledged the significant public interest in the process and assured that due process would be followed. She noted that the consultation concluded in August and that the Secretary of State would make the decisions in due course, cautioning against any actions that could jeopardize the integrity of the process and necessitate its rerun.