Tuesday briefing: To drill or not to drill – Burnham’s first big climate test

The United Kingdom stands at a climate crossroads as the government grapples with a decision on two major offshore oil and gas fields, Rosebank and Jackdaw. The outcome will serve as a significant indicator of the new administration's commitment to its net-zero targets. Environmental campaigners argue that approving new fossil fuel extraction is incompatible with limiting global warming to 1.5C, citing scientific consensus that no new oil and gas fields should be funded.

Miatta Fahnbulleh, now the Secretary of State for Energy Security and Net Zero, previously stated in 2022 that "To have a shot at staying within 1.5C global warming, we can’t have any new oil or gasfields." Her current role places her at the center of this contentious issue, facing one of the government's most challenging and potentially controversial decisions. The public consultation period for the Jackdaw site has closed, and the Rosebank site's consultation concludes next week, intensifying the focus on the government's impending choice.

Rosebank, located 80 miles off the Shetland coast, is described as the UK's last major undeveloped oil site, with reserves estimated between 300 to 500 million barrels of oil and some gas. Jackdaw, a gasfield 150 miles east of Aberdeen, could produce approximately 40,000 barrels of oil equivalent per day, potentially meeting 6% of the UK's North Sea gas supply at its peak and displacing 2% of gas imports over its lifespan. Campaigners contend that the environmental impact of drilling outweighs any potential benefits to energy bills or long-term security.

The ownership structures of these fields add another layer of complexity. Shell holds the license for Jackdaw, while Adura, a joint venture between Shell and Norway's state-owned Equinor, majority owns Rosebank. Ithaca Energy, a subsidiary of Israel's Delek Group, holds a minority stake in Rosebank. Delek's operations in Israeli settlements in the occupied Palestinian territories have also drawn attention in relation to the Rosebank project.

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To have a shot at staying within 1.5C global warming, we can’t have any new oil or gasfields … It’s irresponsible and shortsighted to be funding new #fossilfuels when we need to be getting to #NetZero.