Energy Secretary Leaning Towards Rejecting Rosebank Oilfield

UK Energy Secretary Miatta Fahnbulleh is leaning towards rejecting the Rosebank oilfield, one of the biggest in the North Sea, the Guardian understands. Such a decision would be a blow for the North Sea energy industry and a major victory for climate campaigners. No final decision has been taken, and a ruling is expected later this year.

On Wednesday Fahnbulleh approved the smaller Jackdaw gasfield, prompting protests from parts of the green movement. She told the Guardian the rationale for Jackdaw does not apply to Rosebank: the first is a gasfield serving the domestic market, while the other is an oilfield mainly for export. Rosebank would emit about seven times the carbon of Jackdaw, and she is understood to believe it would do less for energy security.

Jackdaw and energy security

Speaking in Aberdeen, the secretary said gas would be needed during the transition to net zero, and that it is better sourced from the North Sea than imported. Jackdaw is due to start production within weeks and will add an estimated 36m tonnes of carbon emissions. The government said gas would reach homes and businesses from the end of the month. Fahnbulleh admitted the project would not help bring down bills.

She promised that future North Sea tax revenues would fund green energy projects through a new energy wealth fund, which will receive £2bn in the budget. Which tax revenues will go into it remains to be set out by the chancellor in the budget.

Industry and voter reaction

Neil McCulloch, chief executive of Adura, one of the companies behind Rosebank, said the firm was "very confident" and pointed to the field's larger economic benefits. The Jackdaw decision could strengthen Labour in north-east Scotland, but may unsettle some Labour MPs. A Savanta poll for climate group E3G found nearly a third of voters would be less likely to vote Labour if it backed more North Sea oil drilling.