The UK government has approved the controversial Jackdaw gasfield in the North Sea, a widely expected move that will nonetheless dismay environmental campaigners and a number of Labour MPs. While Labour’s 2024 election manifesto committed to a ban on new drilling licences in the North Sea, the companies behind Jackdaw and the Rosebank oilfield project, which is being decided on separately, have sought environmental approval for existing licences. The companies resubmitted their applications for environmental approval earlier this year.
The decision on Jackdaw had been expected last month but was delayed, seemingly to take it beyond the Holborn and St Pancras byelection on 8 October, where Labour was defending a seat against a Green challenge and ultimately won. The Jackdaw field will start supplying gas to homes and businesses from the end of the month, the government said after approving the scheme. Announcing the decision, the energy secretary, Miatta Fahnbulleh, said: “Following careful consideration of all relevant factors I have agreed that the regulator can grant consent for gas to be produced at Jackdaw, which will begin to supply the UK with gas from this winter thanks to the highly skilled and vital North Sea workers.
Tessa Khan, the executive director of the anti-oil campaign group Uplift, said: “Jackdaw will provide around just 2% of our gas demand for roughly 10 years. It has been oversold and won’t stop the overall decline in North Sea jobs, as it will be largely unmanned and operated remotely.” She added: “Labour’s climate credibility is on the line. No new oil and gasfields are compatible with safe climate limits.” The oil and gas industry says the fields will provide 10% of the UK’s output at their peak.
But campaigners say they will cause so much environmental damage as to obliterate any economic benefit. Jackdaw is operated by Shell, and Rosebank by the Norwegian firm Equinor. Both have licences to operate, but environmental approval was rescinded after a judge ruled that the companies needed to account for the carbon emissions that would be created by burning the oil and gas they produce.
The companies have been lobbying hard for the green light. Adura, a North Sea joint venture between Shell and Equinor, commissioned a report this week that said rejecting the two projects would cost the UK economy nearly £10.8bn over the next decade. The Jackdaw announcement could boost Labour’s position in north-east Scotland, where much of the industry is based and where unions have been campaigning heavily for the permits to be granted.
But it is likely to cause angst among some Labour MPs, especially those in seats where they face a challenge from the Green party. A poll by Savanta for the climate group E3G and seen by the Guardian shows that nearly a third of voters say they would be less likely to vote Labour if it gives the go-ahead for more North Sea oil drilling. That includes almost exactly a third of those who voted Labour at the last election, and around half of 18- to 24-year-olds.
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