UK Poised to Back Gas Field Amid Soaring Energy Costs
The UK government is poised to approve the development of the Jackdaw natural gas field in the North Sea, according to unnamed sources cited by the BBC. The project was initially approved several years ago but was overturned due to environmental concerns. However, with oil and gas prices soaring, the UK's dependence on imported energy deepening, and the government's pragmatic approach to energy policy, priorities are being reconsidered.
Prime Minister Andy Burnham has acknowledged that the UK will continue to use oil and gas for some time, stating, 'We won't be able to stop using oil and gas for some time. That's just a fact.' He added that the question is whether they can accelerate its use so that they pay for the transition.
Jackdaw and Rosebank are operated by a joint venture between Shell and Equinor, with Jackdaw holding enough gas to cover 6.5% of the UK's gas demand at its peak. However, some analysts believe it is not worth reviving the North Sea oil and gas industry due to a lack of commercially viable reserves.
Despite this, Shell and Equinor claim that gas from Jackdaw could start flowing as soon as this winter, with all necessary infrastructure 99% complete. Environmental opposition, however, is unlikely to subside, with radical group Just Stop Oil organizing protests in recent weeks.