New North Sea drilling would barely reduce UK gas imports at all, data shows | Fossil fuels
Research has shown that opening large new fields in the North Sea would make almost no difference to the UK’s dependence on gas imports.
The Jackdaw field, one of the largest untapped gas fields in the North Sea, would replace just 2% of the UK’s current gas imports, leaving the UK almost entirely dependent on supplies from Norway and a few other sources.
The Rosebank field, also in Scottish waters but containing mostly oil, will supply just 1% of the UK’s gas imports.
Tessa Khan, chief executive of campaign group Uplift, which compiled the data from public sources, said: “New fields such as Jackdaw and Rosebank will do little to nothing to boost the UK’s gas production. Even in the most optimistic scenario, and assuming none of the gas is exported, Jackdaw will meet just 2% of UK demand over its nine to 12 year lifespan.”
It has already been shown by . Officials including the UK Energy Research CenterHe said new drilling would not lower oil and gas prices or improve the UK’s energy security. It is also unlikely to produce permanent jobs big new tax revenues90% of Britain’s North Sea oil and gas already burnedputting the industry in steep and irreparable decline. Companies also claim tax breaks for accessing new areas that are more difficult to access than existing resources.
But Ed Miliband, the secretary of state for energy security and net zero, is under pressure from the fossil fuel industry, Nigel Farage’s UK Reform Party, some unions and the Conservatives to greenlight Jackdaw and Rosebank, which do not fall under the new licensing ban for North Sea drilling because their practices were already in the system when Labor took office.
Chancellor of the Exchequer Rachel Reeves has previously spoken in favor of drilling, but at the last G7 energy meeting she emphasized renewable energy as the solution to recurring oil crises.
The Guardian understands that Miliband has not yet made a decision on either area and is still mulling over the potential impacts. The UK is expected to be among around 50 countries represented at a major climate conference in Colombia later this month. At the conference, governments will begin plans to phase out fossil fuels.
The North Sea regulator has asked Adura Energy, owner of the Jackdaw field, to answer new questions about its license application, including on greenhouse gas emissions. This process could take weeks, if not longer, meaning a decision is unlikely to be made anytime soon.
Any decision regarding the Rosebank site may be taken separately from the decision regarding Jackdaw. Khan said: “Rosebank is oil for profit, not for our safety. It is predominantly oil for export, with reserves that would breach the UK’s climate commitments if burned. It has the potential to reduce the UK’s annual gas import dependence by just 1% on average.”
Philip Evans, senior climate campaigner at Greenpeace UK, said: “Our fossil fuels are supplied by a volatile global market we cannot control, and are regularly disrupted by reckless wars and blockades. The only path to true security is to leave fossil fuels behind as quickly as possible.”
A spokesperson for the Department for Energy Security and Net Zero told the Guardian: “Our priority is to ensure a fair, orderly and prosperous transition across the North Sea, in line with our climate and legal obligations that drive our clean energy future towards energy security, lower bills and good long-term jobs.”
Friday’s data from the End Fuel Poverty Coalition revealed that valuations of oil and gas companies have increased as a result of the war in Iran. In just over a month since the start of the conflict, BP’s market capitalization has risen by almost a quarter, adding £17bn to the company’s value, while global oil company Exxon Mobil has gained almost a fifth, up £87bn. Shell’s share price rose 15% in the year to Friday, adding around £25bn to the company’s market value, while Chevron rose 17%, adding around £45bn.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “This is not a market for the public good, but one that rewards companies whose products raise bills that millions of households cannot pay.”
He added that households are still reeling from the impact of increases in energy bills linked to the last oil crisis that began in 2022 with Russia’s invasion of Ukraine. “This has left households with huge energy debts and a struggle to make ends meet. It is clear that we need long-term reforms to stop history repeating itself and prevent the scourge of fuel poverty from remaining with us for decades,” he said.
