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Jackdaw approval: a step towards grownup North Sea energy policy

Why domestic supply matters

Andy Burnham said the key issue was where Britain’s oil and gas come from, rather than whether the country will continue using them. Fewer than 2% of UK households have heat pumps, according to Electrify Britain, and the article argues that credible routes to net zero still involve substantial oil and gas use during electrification.

Energy supply risks include the possible closure of the strait of Hormuz, a US president threatening to ban diesel exports and Russian ships operating in the North Sea. Norway also cancelled a planned electricity cable to Scotland in 2023. These pressures sharpen the question of how much supply the UK should secure domestically.

Jackdaw’s expected contribution

The Jackdaw field, located 150 miles east of Aberdeen, has been approved to begin production in time for winter. At peak output, it is expected to provide 6% of UK North Sea gas production, and its projected 11-year life means it would supply gas while the UK continues using it.

Last year, cargos from the US made up 20% of UK gas imports, mostly from Texas and Pennsylvania shale fields. The article argues that domestic gas could reduce exposure to those imports, while noting that Jackdaw is not large enough to transform the UK’s overall supply position.

Other fields and difficult choices

The government’s announcement asked the regulator to consider urgent cases that might benefit from similar measures. That could open the way for other tie-back gasfields in already explored areas, including Tornado, west of the Shetlands.

Rosebank, also near the Shetlands, presents a harder political choice because it is mostly an oilfield, is more polluting and would produce for longer. The arguments in its favour include jobs, investment and tax revenue, as well as the government’s ability to set higher environmental standards during production.

Balancing supply and transition

The article says domestic sources currently account for about a third of UK consumption on a net basis. Offshore lobbyists estimate that increased North Sea production could lift the share to about half; the UK is not expected to become a net exporter again.

Energy secretary Miatta Fahnbulleh said the commitment to net zero by 2050 remained intact. The proposed energy wealth fund would reinvest oil and gas revenues in renewable and low-carbon projects, though its practical details remain to be seen. The article argues that electrification remains central, and that the pace of ending fossil-fuel use will be the key test.

Key points

  • Jackdaw is approved to produce gas in time for winter.
  • At peak, the field is expected to supply 6% of UK North Sea gas production.
  • The government asked the regulator to consider similar urgent cases.
  • The UK’s 2050 net zero commitment remains intact, according to energy secretary Miatta Fahnbulleh.
Read the original on the Guardian ↗

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