27 October 2026
New techniques such as better pumps allow the exploitation of oil and gas fields near the end of their useful lives as with the Dunbar platform pictured here in 2018. Britain needs older wells fully exploited as well as fresh exploration. Photo Iain Cameron / Flickr (CC BY 2.0).
Despite rising energy costs and the uncertainty of supplies, the Labour government hesitates to commit to exploiting North Sea oil and gas. But it is unable to reconcile energy security with its net zero aims.
Under pressure, the government has made a half-hearted change to its earlier stance by giving the go-ahead for the Jackdaw field. But there is little sign yet that this marks a wider change in policy.
Reluctant
On 21 October, the government finally, reluctantly, approved drilling the Jackdaw gas field 150 miles east of Aberdeen. This has an estimated 10 million cubic metres of recoverable gas, all of which can be connected to the national gas network within weeks.
‘Energy costs depend on international prices.’
That’s good news for energy supply and jobs. But Miatta Fahnbulleh, the current Minister for Energy Security and Net Zero, said that all this gas “won’t lower energy bills this winter”. Why is that? Because energy costs depend on international prices.
Fahnbulleh also said that she is “minded” to stop any drilling of the Rosebank oil field northwest of Shetland. This field could yield 300-350 million barrels of oil.
Exported
About 90 per cent of these reserves are high-quality oil, 10 per cent is natural gas. But the government has already said that this would all be exported, sold at global prices.
This government accepts that the market rules. It does not even consider that North Sea production could and should be for home use only, reserved for our industries and households for a discount – not for export.
Opposed
The government is still resolutely opposed to issuing new oil and gas licences for drilling in the North Sea. Fahnbulleh said that it is “absolutely critical that the decision in consistent with our climate obligations, our carbon budget and the end destination we need to get to with the energy transition.”
Trade unions Unite and GMB have cautiously welcomed the Jackdaw decision. But both are clear that this should only be the beginning of a policy change – and that approval for Rosebank is vital.
In a rare agreement with Westminster, Scotland First Minister John Swinney eventually came around to accepting the Jackdaw decision. According to a recent poll, over 60 per cent of Scots were much clearer in favouring approval.