UK Approved Jackdaw North Sea Gas Field on Oct. 21; Government Says It Won't Lower Prices

Since the UK government approved the Jackdaw gas field on Wednesday, Oct. 21, the decision has settled into a larger fight over what a Labour government that promised to end new North Sea drilling is actually willing to do. The Rosebank oil project, the bigger test, still has no ruling.

What the government approved

Energy Secretary Miatta Fahnbulleh announced in Aberdeen that the regulator can grant consent for gas production at Jackdaw. The field sits about 150 miles (240 km) east of Aberdeen and is developed by Adura, the Shell and Equinor joint venture.

The government's own numbers are modest. It says Jackdaw will raise domestic gas production by about 6% at its peak and account for about 5% of UK gas production across an 11-year life. It put the economic benefit at an estimated £2.9 billion ($3.8 billion).

The government also conceded that Jackdaw will not end Britain's need for imported gas or reduce prices, which are set on international markets.

Gas could reach British homes and businesses "from as early as the end of this month," the government said. At peak output, Adura says, the field could supply enough gas to heat about 1.4 million UK homes.

How it got here

A Conservative-led government first approved Jackdaw in 2022. Scotland's Court of Session later ruled the approvals unlawful because the environmental assessment ignored the emissions from burning the gas the field produces. The same ruling covered Rosebank.

Labour won the 2024 general election pledging to stop issuing new drilling licences. Jackdaw was already licensed, so the question was whether a fresh environmental sign-off counted as a new approval. Adura resubmitted its application this year. Burnham became prime minister in July.

Fahnbulleh said the government remains committed to net zero by 2050 and to ending new oil and gas licences. Burnham called the Jackdaw decision "pragmatic."

"At a time when people are really struggling, it's right that we look in a responsible way at maximising the existing energy reserves we have in Britain," he said. "Even on our ambitious climate path, we'll still require oil and gas as part of our energy needs for decades to come."

The jobs and money numbers

The government says the decision protects "hundreds of jobs." OilPrice.com reported that Fahnbulleh herself has acknowledged Jackdaw will create 27 jobs and secure 273. Those figures are far smaller than some supporters have suggested.

Adura commissioned a report warning that rejecting Jackdaw and other North Sea developments would cost the UK economy almost £10.8 billion over the next decade. The company has a direct stake in the outcome.

The government also announced an Energy Wealth Fund with a £2 billion initial payment. It will reinvest oil and gas tax revenue into low-carbon projects. Chancellor John Healey said it would "spark a new wave of clean power."

Who is for it, who is against it

Adura chief executive Neil McCulloch said the decision was urgent because Jackdaw is ready to come online this winter. Rosebank, he noted, will not be ready to produce until next year, so ministers have more time on that ruling. He said the company anticipates a positive outcome.

SNP leader John Swinney welcomed the Jackdaw announcement on X. New Scottish Labour leader Michael Marra has backed both Jackdaw and Rosebank. A Tory byelection win in Aberdeen South followed a campaign built on reviving North Sea production. In Aberdeen, where disposable income fell by almost 20% between 2013 and 2023, many oil and gas workers see the field as a lifeline.

In Washington, President Donald Trump posted on Truth Social that the UK "should go FULL BLAST!!!" Trump said in July, after a first call with Burnham, that the new prime minister told him he planned to open up the North Sea.

Environmental groups and some Labour members oppose the move. The Guardian's editorial board called the decision "a dismal signal" ahead of the November COP summit. It argued that Jackdaw will not affect bills this winter, will supply only about 2% of national demand, and will leave import reliance unchanged. It also said tax breaks for the industry will largely cancel out the revenue.

The board argued that insulating homes and investing in heat pumps would deliver far more, citing research from the E3G think tank.

The 2% and 5% figures measure different things. The government's is a share of UK gas production over the field's life. The Guardian's is a share of national demand.

The approval also landed in the same week the UN Environment Programme concluded that the Paris Agreement's 1.5°C limit is no longer achievable.

What comes next

The government has not ruled on Rosebank, west of the Shetland Islands, which would produce mainly crude oil. Adura says Rosebank will not be ready to start production until next year. That decision, and how Burnham frames the North Sea at the November COP summit, will show whether Jackdaw is a one-off or the start of a broader shift.