The government has denied that Ed Miliband is expected to give the green light to the first major North Sea oil and gas field project in almost ten years – despite growing political pressure to increase drilling amid rising energy prices as a result of the Iran war.
While some reports suggested that the energy secretary was minded the approve the Jackdaw project, a spokesperson dismissed the claims as “unfounded speculation”.
The insistence that no decision has been taken comes despite oil prices having soared in response to Iran’s stranglehold on tankers passing through the Strait of Hormuz.
A decision is still awaited on the project, which was halted by a Supreme Court ruling in 2024 that emissions created by burning fossil fuels should be considered when granting planning permission for new drilling sites.
A challenge brought by environmental campaigners in the wake of the Supreme Court ruling, over approval for the Rosebank oil field north west of Shetland and the Jackdaw gas field off Aberdeen, was upheld at the Court of Session in Edinburgh in January last year.
Projects were able to reapply for consent after the government published new environmental guidance last summer, and the Jackdaw project is currently being assessed by the Offshore Petroleum Regulator for Environment and Decommissioning (Opred) after further information was submitted.
It is understood the Opred has requested further details.
Asked about reports the energy secretary was preparing to give the green light to the Jackdaw project – first reported in The Times – a government spokesperson told The Independent: “We do not recognise this unfounded speculation.
“We cannot comment on live planning decisions, and these decisions will be made in an appropriate and timely manner, after the last governments plans were found to be unlawful.”
Information submitted on behalf of the project said that at peak production Jackdaw is expected to contribute around 6.5 per cent of UK Continental Shelf gas production, which would produce enough energy to heat more than 1.4 million homes.
Energy experts have urged the government to approve the major gas field as uncertainty over energy supplies continues amid the crisis in the Middle East.
Lord John Browne, former chief executive of BP, said the Jackdaw field should “absolutely” be approved.
He told BBC Radio 4’s Today programme: “We need all forms of energy, and we need to make sure that we have a diversified source. We don’t have enough diversification today to take care of crises in the future.
“The question of the North Sea, there are a couple of fields which are partly developed. They should be fully developed and go ahead.”
Asked whether Jackdaw and Rosebank should be given the green light immediately, he said: “Absolutely, because they’re investments which have been partly made. And I think stopping investments halfway through is not a good sign to the market to have confidence in the investment environment in a country.”
Meanwhile, Offshore Energies UK (OEUK), trade association for the UK’s offshore energy industry, welcomed a commitment earlier this month by the UK government and key partners to stabilise energy markets and increase output in certain producing nations amid the crisis in the Middle East.
OEUK energy policy director Enrique Cornejo said: ““As the second largest oil and gas producer in Europe, this should include the UK which must play its part in boosting the supply of energy – bringing forward the Oil and Gas Price Mechanism to increase investment, approving key projects such as Jackdaw and Rosebank, and continuing to expand offshore wind production.”
And David Whitehouse, chief executive of Offshore Energies UK, said: “This is not an either renewables or oil and gas scenario.
“We urgently need greater supplies of secure, domestically produced energy including oil and gas, which will remain a critical part of the UK energy system and economy for decades.”
The row over drilling comes after the International Monetary Fund (IMF) warned that the UK is facing one of the largest shocks from the conflict in the Middle East, saying Britain’s economy is “especially exposed” to spiralling prices because of its reliance on gas‑fired power.
Comparing the impact of rising prices to a “large sudden tax on income” for a family, the IMF warned that the “de facto closure of the Strait of Hormuz and damage to regional infrastructure have produced the largest disruption to the global oil market in its history”.
