The move comes as Britain is under increasing pressure to ensure a robust domestic fuel supply as prices remain high and countries look increasingly uncertain internationally. Those in favour say exploiting local North Sea sources will ease reliance on imported fuels, safeguard industry and maintain supplies through the winter.
Prime Minister Andy Burnham said using Britain’s existing energy sources more wisely could provide much-needed support to consumers and businesses, as the UK moved through the transition to cleaner fuel sources.
The new venture had also received the green light back in 2022, only for this to be contested by environmental campaigners in the courts. It was argued that the assessment had failed to take into account the emissions released when the gas is burned.
But a later ruling mandated a new review of the project, this time including those downstream emissions. The renewed appraisal meant ministers could revisit the plan in the light of Britain’s climate targets before they approved production.
This is in line with the government’s announced policy of not offering new licences for the exploration of new oil and gas fields, but of instead operating existing licensed fields throughout their lifespans. Jackdaw already had a licence, so the decision to approve was not the same as allowing the exploration of a new licensed field.
The project is run by Adura, a venture between Shell and Equinor. They have said that putting the field into production will help domestic energy supplies and aid activity in the wider North Sea energy sector.
Offshore gas projects need expert engineering, maintenance, transport, and supply-chain support. The government said Jackdaw will safeguard hundreds of jobs, but the overall number of new jobs created will be far lower than the number of jobs the project supported.
The decision brings an indication that the approved project can go ahead about energy projects that already possess a licence provided all the legal and environmental hurdles are overcome. No assurance can be given that other disputed developments will be granted approval.
Environmental groups have condemned the approval, claiming that expanding fossil fuel production goes against the UK’s vow to achieve net-zero emissions by 2050. Opponents also say the project will have little impact on the cost of energy, since it accounts for a small share of the country’s demand.
“Producing gas domestically can reduce our dependence on higher emission gas imports and help support energy security as the UK makes the transition to a clean energy system based on renewables and nuclear.” The emissions footprint of this is yet to be seen, as will the extent to which it displaces other fuels.
A second point is that wholesale prices are determined by international gas markets. Simply producing more gas domestically does not necessarily mean that bills will be lower even if it reduces the amount of gas we need to import.
The same day approval was given, the government revealed it will set up a new Energy Wealth Fund with an initial contribution of 2 billion. This is said to ensure revenues from North Sea oil and gas will be used to support the clean energy transition, “connecting” production to the energy system.
