The UK government has approved production from the Jackdaw gas field in the North Sea amid intense debate about the project's environmental and economic impact. Prime Minister Andy Burnham said the decision, which could see the first gas produced by the end of this month, would help heat millions of homes and protect hundreds of jobs. The government also said it would create a new energy wealth fund, using tax revenue from oil and gas extraction, to invest in "green transition".
But environmental campaigners have reacted angrily to the decision, arguing it would hamper efforts to tackle climate change and make "no meaningful difference" to UK energy security. Jackdaw is situated 150 miles (241km) east of Aberdeen and is operated by Adura, a joint venture between Shell and Norwegian state energy firm Equinor. A decision is yet to be taken on whether production can begin at Rosebank, the UK's largest known untapped oil field, which is located off the coast of Shetland in the North Atlantic.
Adura says Jackdaw will provide about 6% of UK gas production, enough to power 1.4 million homes. Once imports are taken into account that equates to about 2% of national demand. The gas will be pumped to the existing Shearwater platform for processing – known as a tie-back in industry terms – before being piped to the St Fergus gas terminal in Aberdeenshire.
The UK government said that over its expected 11-year lifespan, Jackdaw would support the UK's gas supply, protect jobs and add £2.9bn to the economy. Energy Secretary Miatta Fahnbulleh said the gas from Jackdaw would be in homes and businesses this month - although she told BBC Radio Scotland Breakfast that it would not lower energy bills this winter. She said the decision would "help minimise the UK's use of imported higher emission fuels as we continue our transition to renewables and nuclear".
"The decision is compatible with our legally binding climate commitments, and we remain resolute in ending new licences for oil and gas and achieving net zero by 2050," she said. The UK government also announced the establishment of an energy wealth fund, with an initial £2bn of funding, to invest in renewable and low carbon energy projects. Scotland's First Minister John Swinney said he hoped the announcement would provide some certainty for the north east of Scotland.
"It is vital that the economic benefits of our energy are felt here in Scotland and used to bring energy bills down, rather than flowing to the Treasury to plug more short-term spending gaps," said the SNP leader. He also welcomed the creation of an energy wealth fund, which he said should be "prioritised for offshore renewable opportunities and be ringfenced to be focused on the north east of Scotland". Scottish Conservative leader Russell Findlay said the decision was a victory for Scotland's oil and gas workers, but added: "They should never have had to wait this long for common sense to prevail." Business leaders in Aberdeen said it was "exactly the sort of pragmatic call the North Sea has been crying out for", and unions also welcomed the decision.
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