What Jackdaw’s Approval Means for the Future of North Sea Drilling
A lot has happened since 1 June 2022, the date when ministers first granted permission to tap the Jackdaw gas field. The Conservatives were halfway through their ill-fated final term of three. Kwasi Kwarteng was the business secretary, with equally ill-fated aspirations for higher office. And the Department for Energy Security and Net Zero – now responsible for overseeing all major energy policy…
On June 1, 2022, the Conservative government gave the green light to the Jackdaw gas field in the North Sea, despite previous efforts to stop the project. Over the next four years, Britain saw five new energy secretaries and six Chancellors, and the ownership of both Jackdaw and its oil-based peer, Rosebank, changed through the formation of Adura, a joint venture between Shell and Norway's Equinor.
However, Jackdaw remained in a state of regulatory limbo, preventing Adura from extracting the resources and leaving hundreds of North Sea workers' futures uncertain. On Wednesday, Miatta Fahnbulleh, the latest energy secretary, approved the project, citing its impact on jobs, energy security, and the environment. This decision has been met with mixed reactions, with some praising it and others criticizing it for overlooking climate damage.
Despite the controversy, Fahnbulleh's approval is not unexpected, as her predecessor had promised a more pragmatic approach towards Britain's North Sea energy assets. The approval of Jackdaw raises questions about the future of Rosebank, a larger and more controversial oil field. While some anticipate a positive decision for Rosebank, others believe Fahnbulleh may reject it due to its environmental impact and the fact that it would not significantly boost the UK's energy security.
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