New North Sea drilling would barely reduce UK gas imports at all, data shows | Fossil fuels

Opening major new fields in the North Sea would make virtually no difference to the UK’s dependence on gas imports, research has found.

The Jackdaw field, one of the largest untapped gas fields in the North Sea, would replace just 2% of the UK’s current gas imports, leaving the UK still almost entirely dependent on supplies from Norway and a few other sources.

The Rosebank field, also located in Scottish waters but containing mainly oil, would replace only around 1% of the UK’s gas imports.

Tessa Khan, executive director of Uplift, the campaign group which compiled the data from public sources, said: “New fields like Jackdaw and Rosebank would do little to boost the UK’s gas production. Even in the most optimistic scenario, and assuming none of its gas is exported, Jackdaw would only supply 2% of UK demand over its nine to 12-year lifespan.”

It has already been shown by authorities, including the UK Energy Research Centre, that further drilling will not reduce oil and gas prices or improve the UK’s energy security. It is also unlikely to generate lasting jobs or significant new tax revenue, as 90% of the UK’s North Sea oil and gas has already been burned, plunging the industry into steep and irremediable decline. Companies are also demanding tax breaks to exploit new deposits, which are more difficult to access than existing supplies.

But Ed Miliband, secretary of state for energy security and net zero, is under pressure from the fossil fuel industry, Nigel Farage’s Reform UK party, some unions and the Conservatives to give the green light to Jackdaw and Rosebank, who are not covered by the ban on new North Sea drilling licenses because their applications were already in the system when Labor took office.

Rachel Reeves, the Chancellor of the Exchequer, has already come out in favor of drilling, although at the recent G7 energy meeting she emphasized renewable energy as a solution to recurring oil crises.

Miliband has not yet made a decision in either area, according to the Guardian, and is still considering the potential impacts. The UK is likely to be among around 50 countries represented at a major climate conference later this month in Colombia, where governments will launch plans to phase out fossil fuels.

The owner of the Jackdaw field, Adura Energy, has been asked by the North Sea regulator to answer new questions relating to the license application, including on greenhouse gas emissions. This process could take weeks or longer, meaning no imminent decision is likely.

Any decision regarding the Rosebank field could be made separately from that regarding Jackdaw. Khan said: “Rosebank is oil for profit, not for our security. Its reserves – which, if burned, would see the UK default on its climate commitments – are mainly oil for export. It has the potential to reduce the UK’s annual dependence on gas imports by just 1% on average.”

Philip Evans, a Greenpeace UK climate campaigner, said: “Our fossil fuels are supplied by a volatile global market that we cannot control, and which is regularly upended by irresponsible wars and blockades. The only path to true security is to abandon fossil fuels as quickly as possible.”

A spokesperson for the Department of Energy Security and Net Zero told the Guardian: “Our priority is to ensure a fair, orderly and prosperous transition in the North Sea, in line with our climate and legal obligations, which drives our clean energy future, energy security, lower bills and good jobs for the long term. »

Data from the End Fuel Poverty Coalition released Friday revealed that valuations of oil and gas companies had inflated in the wake of the Iran war. In just over a month since the dispute began, BP’s market capitalization has risen by almost a quarter, adding £17 billion to the company’s value, while global oil company Exxon Mobil has gained almost a fifth, an increase of £87 billion. Shell’s share price was up 15% on Friday, adding around £25bn to the company’s market capitalisation, while Chevron added around £45bn, an increase of 17%.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “This is not a market that serves the public interest, it is a market that rewards companies whose products drive up the bills that millions of households cannot afford to pay.”

Households are still reeling from the impact of rising energy bills linked to the latest oil shock, which began in 2022 when Russia invaded Ukraine, he added. “This has left households saddled with huge energy debts and struggling to make ends meet. It is clear that we need long-term reform to stop history repeating itself and prevent the scourge of fuel poverty from continuing for decades,” he said.