UK Government Nears Decision on Jackdaw Gas and Rosebank Oil Projects

The UK government is expected to decide within weeks whether to grant consent for the Jackdaw gas field east of Aberdeen and the Rosebank oil field off the Shetland Islands. Prime Minister Andy Burnham told MPs he will take a “pragmatic approach” and will set out the decisions “shortly.” Energy Minister Miatta Fahnbulleh said the department has reviewed “all the information” on the controversial projects after consultations concluded in August.

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Both sites received licences from the previous Conservative administration in 2022 (Rosebank) and 2023 (Jackdaw). In the intervening year, the Court of Session in Edinburgh ruled the approvals unlawful because the government failed to assess the climate impacts of extracting the resources. Labour’s 2024 manifesto pledged not to issue new licences for oil and gas development, yet the current administration faces pressure from industry and opposition parties. Tory leader Kemi Badenoch urged Burnham to “stop faffing about” and allow drilling to proceed.

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A report commissioned by Adura—a joint venture of Shell and Equinor—estimated the two projects could add £35 billion to the UK economy and generate about £12 billion in extra tax revenues between 2026 and 2035. Adura also warned that rejecting the licences could cost the economy £10.8 billion. By contrast, an analysis from the Smith School of Enterprise and the Environment, using oil and gas prices as of early 2026, found that maximizing North Sea extraction would save households only £16-£82 per year, assuming tax revenues were redistributed. The same study projected that a fully renewable electricity system could save households up to £441 annually, though it would require upfront investment in heat pumps and insulation.

The Independent

Burnburn’s administration emphasizes a balanced assessment of growth effects against environmental commitments. Fahnbulleh highlighted that the decision will consider both economic benefits and the UK’s climate obligations. The government has not yet indicated whether it will overturn the court’s ruling or maintain the existing licences.

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Equinor chief executive Anders Opedal warned that denying the projects would damage the UK’s attractiveness to investors and constitute a “major setback.” Environmental experts, including Dr Anupama Sen of the Smith School, argue that continued drilling would increase household energy costs compared with a transition to clean energy.

The Independent