The UK government has approved the smaller Jackdaw gas field in the North Sea, while the larger Rosebank oil field remains in limbo. Both projects are owned by a Shell and Equinor joint venture and received initial approval in 2022 and 2023, but have since faced years of legal uncertainty.
Much of the debate around North Sea developments focuses on the environmental impact of extraction rather than the eventual production of oil and gas. The article argues that bigger projects generate more energy and jobs, while domestic gas improves supply security. Since the UK imports gasoline and diesel despite exporting crude oil, the distinction between domestic use and export is less clear-cut.
Economist Dieter Helm notes that climate change is a global problem, and the UK's real climate impact comes from emissions associated with demand rather than production location. To the extent that Jackdaw and Rosebank do not change overall fossil fuel demand, they should both be approved.
While some campaigners argue that approving all undeveloped projects could lower prices and slow renewable adoption, the real barrier remains the relatively high cost of renewables. China's efforts to reduce the cost of solar panels, EVs, and batteries have driven the transition more than policies restricting fossil fuel supply. Mitigating climate change requires advancing multiple solutions simultaneously, not just reducing fossil fuel usage.
Source: Financial Times Companies · Summarized by HeadlinesBriefing